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 today’s chart, we see two aspects, one hugely bearish, and the other, a little encouraging for the bulls. The bearish part is the gap down opening, and the encouragement for the bulls is the bounce from a previous support/resistance level.
Our stop of 6110 has been triggered. In such a case we could be out of the market. The huge gap down opening seems to have been triggered by the negative sentiment worldwide.
Further, the Nifty has also made a short term bearish formation.
Therefore, because the pink support zone box has been violated convincingly, we must assume that this support zone will now offer huge resistance, if and when the Nifty tries its move up. Going ahead, it is expected that the Index could remain weak for another day or so, and then make a short term bullish formation.
Let the negative sentiment be weaned out of the system and then think of buying again. Please wait for a short term bullish formation and then take a risk for buying. As we know very well, bottom fishing burns.
Trade happy after planning your trade.
1 comment:
Sirji correction over now no !?!? US fell 20% from top, uk - 14% and india abt 8%.
Bernanke speaks tonight (17 jan). so still wait for bullish setup and not catch the bottom ?? how to avoid such "buying spree" syndrome and avoid getting cut !!
reg
ketan
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