Lower-Gap Pattern Signals Fragile Market Amid Tensions Today - Tradebulls Securities Pvt Ltd
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The recurring lower-gap sequence on the daily chart highlights the fragile nature of the market amid ongoing geopolitical tensions. On a weekly closing basis, the index has slipped below the crucial 24030 support, which weakens the earlier bullish structure. While the weekly RSI continues to trend lower, the daily RSI has entered the oversold zone, raising expectations of a short-term relief bounce during the week. The immediate gap resistance near 23,556 could act as a short-term pullback zone, as the index is currently trading significantly below its 5-DEMA placed around 23750. The major resistance for the week stands near 23830, while on the downside the index may find temporary support around 22920 where an unfilled gap exists from the earlier upmove. With the broader trend now under pressure, it is advisable to avoid aggressive long positions and adopt a range-trading approach until a clear reversal in sentiment and price action emerges. Traders should avoid initiating fresh positional trades without confirmation, maintain adequate hedges on existing long positions, and keep position sizes smaller given the heightened volatility driven by geopolitical developments and fluctuations in crude oil prices
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