These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click here. Due to technical reasons, I am unable to upload the chart at this blog today.
Yesterday, it was suggested that the conventional indicators were showing negative divergence and there was a strong possibility that the Nifty could correct downward. The trigger seems to be the news of a hedge fund collapsing. These sorts of panic triggers are unavoidable in the market, and therefore, it was suggested that tight stops should be adhered to and a hedge be created at higher levels. This could also be termed as a failure of the pattern.
http://www.traderji.com/58968-post49.html
http://dusant.blogspot.com/2006/09/nifty-analysis-for-15-sep-06.html
In fact, those among us who have guts of steel could use this opportunity to create fresh longs. The only conditions being that the temptation of bottom fishing should be avoided at all costs, and to allow the Nifty to make a convincing higher top/higher bottom pivot on the hourly charts.
At this point, the bottom of the inverted head also assumes huge importance, as that should act as a support in case this bull run should continue.
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