Last 2 week of December 2012 were generally quiet for stocks, however, market could be volatile towards end of the week as we are still paying attention to fiscal cliff : increased tax rates, spending cuts in in January 2013 and expiration of options & futures contracts.
Technical forecast:
Weekly candle: Reversal candlestick pattern signal a bearish market.
Daily Chart: market has retraced 2/3 from October high to November low, with a bearish weekly candle and 3 black soldier, we could expect market to trade within 13,120 – 220 pts. before breaking down to target 13030 pts.
1 Hour chart: market has formed a butterfly pattern and hence we reckon market to be bullish on Monday Asian hour, and return to resistance 13,220 pts.
Hunt for short near 13,220 – 250 pts. and if market traded below 13120 it confirms the bearish sentiment, shift stop loss to entry and set target exit near 13,030 pts.
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