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.Well. The first cluster of supports is broken. It should tell us that the market is in no hurry to be bullish.
The last hour rush up may again be attributed to week-end short covering.
At this stage, the previous support ~4996 may also be broken. Therefore, we should be careful of our long positions. In fact on the intraday chart, we see a technical pattern called an island reversal. Purists would argue that this is not a classic island reversal, and it should happen only at market peaks. So … what the hell? It is not a classic pattern, but it is a pattern nonetheless.
The market has peaked for the short term at around ~5550 levels. I would advise bullish positions only after that high is violated. Till then, we could even short the market on rises, keeping the previous cluster of ~5400 as a stop.
The only silver lining in the dark clouds is the IT sector, which may just have bottomed.
Trade happy after planning your trade.
1 comment:
Sirji, patni fell from 600 to 170 before rising - and that too in last 1 yr...
it (and almost all IT stks) completed 1 bear phase in probably a long term bull mkt...
can nifty fall from 6000 to 1700 in next 1 yr !?
Post a Comment