Disclaimer: These are my personal musings and only meant for entertainment, not as trading advise. To view the full chart, right click on the thumbnail and open in a new window.
We have seen a breakout of the Great Wall of resistance today. Is it a false breakout? Only time can tell as of today. The earlier resistances should act as support points, as the Nifty has still not made a lower top and lower bottom pattern as of now.
The crash of the last 90 minutes or so can be attributed to a knee jerk reaction to the Bank of England raising interest rates out of the blue. Or … the event may have been used as an excuse to run stops of bulls … who knows for sure?
The Nifty could resume its uptrend tomorrow when the news is assimilated and discounted. All said, I have been mentioning for the last week or so, to keep hedging, to avoid untoward capital losses.
Even now, the probability seems higher that the bulls will get back in action. And as they say, when the intermediate trend is up, use short term downside corrections to go long. I am still of the opinion that we could use dips to buy, until we see a technical breakdown.
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