These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
The Nifty is still making a steady upward pattern. Normally, on a short term scale, this pattern is considered extremely bullish, but not so after a steady rise.
There is not much more to add from Thursday's analysis. I still remain long. I had actually expected that my stop would be triggered. I was actually surprised that it was not. And from the pattern, the market is showing, it could go anyway.
I repeat, the market is not yet giving any signs of weakness, so why buck the trend and go short. Only die hard gamblers would attempt shorts at this point. Let the Nifty confirm weakness with a lower top and bottom, and shorting would be less riskier.
3 comments:
hello dushant,
very great analysis by u.i have been following your posts from sometime now and it is almost 100% correct!
i have a doubt.u have said 3565 is the stop on 27th sept.but intraday low on 28th was 3561.when do u decide that the stop has been taken out.Is it on the EOD closing below the stop.It would be of great help in my learning process if u could kindly explain me this.
regards,
adi.
Hello Adi,
What you say has relevance, where a person needs to use some element of judgement. Yes, the Nifty did trade for a few seconds, below 3565. And immediately bounced back up.
Normally I keep an eye on the Nifty Future also, and if I notice huge volumes coming in at possible bottoms, that bottom normally tends to hold.
If a person is an active trader, this scenario is possible.
On the other hand, if a person is not an active trader, then she/he could look at the mood of the market only during the last 30 minutes of trading, as the close is the weighted average of the last 30 minutes.
Dusant
thanks a lot dusant sir,
i am an active trader and ur clue would help me a lot.
regards,
adi
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