Nifty for 15 May 07

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.” Again on Monday, 14 May, it was suggested “the gap of today may be tried to be closed. This down move may be utilised to buy.”

Today has been a non event day … almost. Except that yesterday’s gap has not been closed. Therefore, we could be alert tomorrow for such an event. However, if the gap is not closed, then we may see a runaway gap, which could reinforce the bullish sentiment.

The candles are still small. The short term trend has still not changed as up, but has not confirmed the down either. The likelihood of it changing to up is highly probable.

Plan the trade and trade happy.