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.On Friday, 11 May, it was suggested to “wait for a break above 4095, and then buy on a dip, with an appropriate stop.”
The break above 4095 has happened, and we could use any correction to buy in.
Further, the low of 3981 seems to have taken support on a tested trend, which validates it, further. Therefore, we may label this bottom as a significant one. The gap up opening may not have allowed traders to buy in, but these are the hazards to real live trading.
In any case, the gap of today may be tried to be closed. This down move may be utilised to buy.
The candles are still small. This tells us that even after such a positive opening for the week, the market continues to be uncertain about the direction. The short term trend may change as up from today, provided the bottom of 3981 is not violated. The likelihood of that happening is highly probable.
1 comment:
Sirji, i feel that we are heading for a correction, probably till 3750 on nifty. (Time and again i am overpowered by bearish sentiment - haha)
Any such chances visible from ur sentiment neutral analysis ?
reg
ketan
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