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 down move was significant today. A constant selling pressure, without very large volumes suggests that we are back in a downward correction mode.
The hiccup mentioned earlier seems to be upon us. It is quite possible that we may see this weakness continue into the last hours on Thursday, and then the market will push stops.
We continue to monitor the trading event of significant importance coming up on Thursday.
After today’s price movement, the levels of 4060 to 4080 still are open. The market seems to be testing this gap.
Further, short term resistances overhead are appearing at the 4130/4140 and at 4170/4180.
Let us wait and watch how the market shapes up this week. As of now, the long term and intermediate trends are still up. The short term is down. Which adds great significance to the support levels at 4030/4040 and 3950/3970. If these levels are tested and penetrated, then we would need to rethink our strategy.
Till then, trade happy.
4 comments:
sirji, u know something but are not telling abt Thursday, 22 feb !! do share with us.
Do u plot option charts anymore ? what do they indicate ??
thanks in advance, do post before 3.30 on 21 feb if u read this prior to that ...
reg
ketan
Dear dusant ,
after 14th feb ,2007 I was expecting a new high , jsut like you.
I never expected this correction atleast my charts did not tell this .
where you expecting this correction , the one which started from 20th ? did ur chart study revealed u that nifty will shed some weight from 20th ?
Ketan and Anonymous,
Let me drive home some hard facts. The whole world is obsessed by the magic word "forecast". Technical Analysis is a tool to trade, not forecast.
No one is going to come out and give us a medal if we are able to "forecast" the market accurately once in a while. But our pockets are going to give us a huge medal, if we are able to use the tool of technical analysis to draw up a trading plan, according to the probability being suggested on the charts, and then trade our plan.
Grow up guys ... this is the real world we are talking about, not a fairy tale, where everyone lives happily ever after.
I may sound harsh at this point, but a few words of harshness are much better than a big hole in the pocket.
Dusant
So True sirji ! But can we remain kids for ever ??! Little monkeys, so the leader of the clan can watch over us when we move too far away from the clan and into the world of forecast ! haha.
Jokes apart, point very well understood sirji ! thank you ever so humbly !
reg
ketan
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