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.
Wednesday was expected to be a weak day, but the sideways movement continued. As can be seen from the chart, in the last few days, we have seen gap openings which are contributing to the fear factor among short term traders. Intermediate and longer term traders would be insulated from these gyrations.
The Index was looking to make a rough head and shoulders pattern till Tuesday. Today, it has not yet confirmed that pattern. If it does not convincingly break down, the trend can actually reverse to up.
The short term trend is giving mixed signals, but the intermediate term and long term trends are still up. In fact, today i.e. Wednesday, the short term trend seems to be indicating to turn up. The short term bullish pattern which could confirm the bottoming of the Index may occur on Thursday.
The main reason for the short term downtrend was the Bank Nifty, which also seems to have turned upward. Complacency is not an option during trading, and this volatility can be attributed to the derivatives expiry on Thursday.
Trade happy.
1 comment:
sorry for not responding sirji, was travelling for two days. happy IDay to you and ur fans.
just like u said ! it turned up ! so now when to buy ??! they say feb is small series so sell straddles, true ??
reg
ketan
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