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.As has been consistently suggested over the last week or so, the extreme short term trend has been biased down, while the intermediate trend is still up. The patterns forming on the Nifty hourly chart are also suggesting the same.
If the bottom of today holds, then it is forming a triangular consolidation pattern, which suggested that the bulls do not want to allow the would be bulls to enter at lower levels.
The highs of the last few days has also been violated, which I do not interpret as an extremely bullish sign, as this stage. It seems that the stops of the bears have been run today. Soon another foray of bull stop running may also occur.
In any case, from this price action of the Nifty, it does not seem that the previous bottom of 3510 is going to be violated. In fact, I am assuming that the lowest the Nifty would see at this stage is 3530.
Therefore, it is suggested to plan your trades according to that.
4 comments:
Sirji ! By far the best analysis of Indian mkts available on the internet !! Great work from a great mind !! Do keep it up !!
(Hope you are back from the vacation ! Do teach me how to make money so that i too can go on a vacation !! Haha !)
reg
ketan
Thank you Ketan. As I mentioned earlier, the markets seem to have been kind to my analysis.
Dusant
no more posts after 11 oct ??
Hi,
Most of the so called professional analyst, cover their back by giving levels on both sides and by being purposely ambiguous about the direction.
Your analysis is refreshingly straighforward and usable.
Hope you are having equally good time while on vacation.
Regards
Sanjay
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