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.Within a span of two days, historic and short term support and resistance lines have been tested and confirmed. How does the market know where to pause?
After today’s price action, the earlier projected levels do not seem possible now. As we can see, the short term chart has indeed made a bullish pattern. Further, the Index opened with a gap, and failed to close it on the intraday chart. This suggests that the market is indeed bullish and the correction may have been over with Monday’s low.
That brings us to our earlier trading suggestion ... to buy on dips. A stop may be retained at a close below 5070 for the next few days.
The stop must seem a large distance away. However, readers are requested to check out my musings of just last week. The links are given below.
Nifty for 17-Oct-07.
Nifty for 18-Oct-07.
Nifty for 19-Oct-07.
It was suggested that we are in a volatile stage in the market and there could be violent moves either way, as the corrective phase is the most difficult to trade. At times like this, it is also prudent to hedge trades to avoid colossal losses.
Plan your trades and be happy. After all, trading scares are all in the mind.
1 comment:
If it doesnt fall today, does it go to 5800 on 25 th oct ??!
will be traveling on the crucial day, so will miss ur tomorrows post too - will do the post-mortem later sirji !
reg
ketan
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