Nifty for 10 Mar 07

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 situation is getting too close for comfort. We did see a bounce today. However, the market could not sustain the gains and crashed. The positive thing about today is that the earlier bottom is still holding.

Traders could continue to keep the low of Monday 30 April (4028), as a stop to protect from losses.

For the last few days, we notice that the candles are small but the shadows are large. This tells us that even though the trading range for the day is large enough, the market is uncertain about the direction. Also we notice from the chart that the price is squeezing, with lower tops and higher bottoms.

When the market itself is uncertain about the direction, why risk capital and try and catch the bottom? Wait for the trend to establish.

And as I am fond of repeating … Plan and trade happy.