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.
At last an exciting day. There was enough volatility to shock both the bulls as well as the bears. The direction, nonetheless, was downwards.
A trader could be short on the breach of the earlier support zone of 3800. Now the earlier support zones are all going to turn into resistances.
There are two alternatives which present themselves to us. One is that the Nifty has bottomed today at the 3660 level, and we could see a slow retracement upwards. Please appreciate that any rise will be met with more selling, and the going is expected to take a huge effort from the bulls.
The second is that we could see the Nifty meeting resistance at the 3800 zone and then breach today’s bottom.
In that case, this sharp downside correction could terminate at the 3550 level, from which the bull run could resume.
Please plan your trade according to it.
2 comments:
The charts show the zones you mark, but do not show the Fibonacci values. Can you plz post charts showing the fib retracements et al
Hello Anonymous,
The charting software I use does not display the values of the levels.
Basically, the Fib Levels are only an indication of probable levels, which the market can either confirm or sweep aside.
Dusant
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