At Higher level we have seen a DOJI, A Doji 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 and closed at day low. As the index has closed below the doji we can expect some retracement.

A Doji at a higher level suggests a correction.

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 Doji 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.

FR40

Jan 03 2022