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.
As has been consistently suggested over the last week or so, the extreme short term trend has been biased down, while the intermediate trend is still up. The patterns forming on the Nifty hourly chart are also suggesting the same.
If the bottom of today holds, then it is forming a triangular consolidation pattern, which suggested that the bulls do not want to allow the would be bulls to enter at lower levels.
The highs of the last few days has also been violated, which I do not interpret as an extremely bullish sign, as this stage. It seems that the stops of the bears have been run today. Soon another foray of bull stop running may also occur.
In any case, from this price action of the Nifty, it does not seem that the previous bottom of 3510 is going to be violated. In fact, I am assuming that the lowest the Nifty would see at this stage is 3530.
Therefore, it is suggested to plan your trades according to that.
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.
There still seems nothing more to add from yesterday’s analysis. The extreme short term trend is still down. The intermediate and long term trend is still up.
For longs, I would like to place my stops a little below 3510.
This type of volatile market will give jitters to both bulls as well as bears. How do we trade this market then? I have three options. (i) Enter at lower levels, (ii) short at higher levels, or (3) stay away.
We need to plan our strategy according to the time frame of our choosing and risk appetite. That is the basic essence of trading this volatile time.
And keep in mind, I still maintain that the probability still remains upwards.
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 extreme short term trend is still down. However, if we step back just a little, we could notice a sideways correction, which is in the nature of consolidation.
Apart from this, there seems nothing more to add from Friday's analysis.
Quite a few people have contacted me directly on chat, saying that I am a fool, and I do not know the meaning or interpretation of certain technical patterns.
It does happen that we fall into the “classic pattern” syndrome. I would only suggest readers to please keep your mind open, and be prepared for any eventuality.
And keep in mind that the probability still remains upwards.
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.
