Nifty for 19 Nov 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.

From the charts it is very obvious that the market is testing the resistance again … and again and again. Normally, when the market tests such a resistance several times and is unable to break it, it collapses fast and furious. However, it has not done so. In such an event, it may be surmised that the market is preparing to break out on the upward direction. And this move also could be fast and furious.

We also notice that the downside movement has not been substantial. Therefore, logically, the market should give another 500 points from this stage IF it breaks out upwards. But please remember the suggestion made last week. That of volatility.

We could maintain our suggestion of bullish outlook and could continue to buy on dips.

Trade happy after planning your trade.