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.I shudder to think of the effects this huge gap down fall would have on the accounts of highly leveraged traders.
After today’s price action, it becomes really difficult to take a directional call on the market. In fact, as mentioned yesterday, i.e. Thursday, “We may possibly see some correction for about 200 odd points.” It is practically impossible to foresee a 200 odd point fall in a single day.
On Thursday, the market sidelined the bears. And today it has practically sidelined the bulls. It was mentioned yesterday, “As a result, we may see some profit booking in the next few days.” However, today was not profit booking, but a panicked knee jerk reaction to the global cues.
My stop has been triggered, and would prefer to stay out for the moment. As I have stated earlier, the long term trend seems to still be up, and it is not suggested to have bearish thoughts.
With the fresh inputs available after Friday, it is normally observed that if a potential target is achieved in one day, we could look at lower levels. Considering the various levels between the low of 12 June 07, and the high of 24 July 07, we arrive at a cluster of targets between 4374 and 4388.
From a longer term perspective, technically the position remains as a suggestion to buy on dips. However, patience is now suggested, and we could allow this “bad blood” to flow out completely. Let this fall play itself out completely, and then we may suggest buying afresh. Please keep in mind the bullish setup which is posted on the links on the right side of this page.
Plan your trades and trade happy.
1 comment:
well it seemed to stabilise today, but like u said, let it play itself out !
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