Nifty for 19 Feb 08

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.

As suggested yesterday, the market has reached the real challenge zone. The black box still is not violated.

A gap open, a sharp retest of the “zone” and a closing of the opening gap. All in a day’s work.

The candle for today suggests a breaking of the upward momentum. It could be wise to be cautious at this stage. Stops may be raised, either to lock in profits or to protect losses, depending on what time frame of trading the reader chooses.

Longer term traders may continue to buy on dips. The stop may be retained at a close below ~4950 for long positions.

Trade happy after planning your trade.