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 Index has surprised me by its sharp downward move. The tight movement of the last few trading sessions was suggesting a sharp move. However, the direction was unanticipated. But then, that is what stops are for.
Please take a look at the hourly chart. The red circles are the intermediate bottoms. The blue circles are the short term bottoms.
After today’s action, the short term trend is down. The intermediate term trend is still up. Please remember, this is on the hourly chart. If we look at the daily chart, we have to follow the same principle.
And in any case, the long term trend is still up.
Today, the Nifty has rested on a support zone. With the hugely negative sentiment, we may see some follow up selling tomorrow too, in the first hours of trading. We may then see some buying support coming in, by the way of short covering.
Please do not assume anything and do not try bottom fishing. Allow the index to confirm the support at whatever level it chooses, and then buy.
Therefore, please revisit the link on my blog for the bullish set up. As of now, shorting could be hazardous. Here is the link for convenience. http://dusant.blogspot.com/2007/01/nifty-for-11-jan-07.html
The next short term cycle in time falls on June 11. So we may see this downtrend continue till then.
Plan your trades and trade happy.
1 comment:
why r they giving such unexpeced bouts of correction ? out of boredom or there are genuine reasons that we still havent heard of even in news !
mkt is always wiser, but this time its not opening its mouth !
reg
ketan
Post a Comment