“Too many Weaker References” – What does that actually mean? It means more of short term buyers behavior at every dip where they come and pile at very mechanical references. Those are the references which are often susceptible to retest and at times faster. when the weaker reference levels are exponential it indicates that short term inventory is getting long to too long and the revisiting odds of all those references significantly increased.
Similar odds of reference levels are in Nifty Futures charts at lower levels which has higher odds of revisit. The following are the levels.
1)Last Monday Low is also Low Friday Low (Which is a weaker low and a poor low by itself)
2)Buying tails around 18th Apr Low, 20th Apr Low and 24th Apr low are exactly very tight reference levels.
3)Weak ORR formation on 16th of Apr at 10484 levels.
There are many downside weaker reference levels. Will talk about it once the odds gets clears the nearest downside reference levels.
I feel that the markets are in a correction phase now and will take time to attain a little stability