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.The bounce for today was strong. It needs to be validated tomorrow. In all probability, this bounce is only due to short covering. This suggests that this up move may be short lived.
However, please remember, this is only an assumption. If the Nifty continues its journey upwards and fails to violate 5390 on the downside then the short term trend would resume upwards.
On the intraday charts, we have seen a short term bullish pattern, which still needs to be validated.
There was a question, why I have not suggested going short. The simple reason is that a trader must learn to sail with the wind. It takes much lesser effort to make profits. The 5070 level was just a mathematical projection. It is not necessary that the market could achieve that level. It could stop before. Just like it has done today.
The main trend is still bullish. We see a bullish pattern on the intraday charts. We may hazard entering long positions. However, this phase is a correction in the main up trend. And as we know, any move which is counter to the trend is volatile. It is, therefore, prudent to stick to the trend.
Trade happy after planning your trade.
1 comment:
Your simple but extremely wise 2 sentences have given a new meaning to me sirji !! it has taken me 2 yrs to become a non-bear, if not a bull !
i am planning to give up shorting but some long term technicals are still telling me that nifty will go down to 4300-4400 levels once....
will not short again after that ! however, i have been shorting nifty since it was 2200 and it has reached 6000 ! so now i put money on ur analysis rather than mine ! haha
i am sure many others have realized the futility of shorting in bull mkts......
thanks and regards,
ketan
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