At Higher level we have seen a hammer, the hammer has been formed at the resistance zone. A candlestick pattern forming at resistance or support zone needs to be given higher consideration. The Index on the next day opened lower than then previous day and formed a spinning top, again a point of consideration. As a spinning top has been formed we will wait for the next candle to close below the spinning top low, once that has been seen in the coming 2 days we can enter short.

A hammer at a higher level suggests a correction. A spinning top concludes to wait for a few days for confirmation.

The RSI has just been above the Resistance zone, If the RSI falls beyond 54 we will get another confirmation on the sell side.

The DMI+ is trending above DMI- which suggests a positive direction but the ADX is not showing strength yet.

For going Long the Index has to close above the Hammer and the RSI should trade above 64, as well as ADX should trade above DMI-

Suggesting to go short only if above conditions are fulfilled.

Advice : Sell if above conditions are fulfilled.

DJ30

Jan 03 2022