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Tuesday, 12 February 2013

Importance of Sector Trends

Analysing the sectoral trends every day after market close gives an idea of which sectors to trade the next day. Sectors which show the same trend on hourly and daily charts are good candidates to select for next day. After market opening, if the same trend continues in lower time frames, 30-15-10-5 min charts, better to trade in the same direction.
Sector trends will also give an idea on which sectors will react first on a market reversal next day.
For example, if market turns positive on Feb 12, Pharma and Banking will recover first.
Most of the sectors are still negative. Only IT is positive in daily charts. Pharma and Banks are showing some kind of resilience.
To see my earlier sector analysis click here.



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