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 trailing stop at 5090, which was suggested for short term traders, would have exited them from the market.
The short term trend has turned sharply down. However, the intermediate term trend has still retained some semblance of bullishness while being flat. Intermediate term traders are also cautioned that this is not an invitation to buy. For the intermediate term trend to turn down, we should monitor ~4800.
With such a sharp fall, it is expected that we may have some sort of short covering, which would allow partial recovery. However, this partial recovery could be viewed by bigger bears as an opportunity to short, and we may see selling at higher levels.
A word of caution. It is assumed that readers of these musings are small traders, who do not have a large capital base. Therefore, smaller traders are not suggested to short either, unless they are looking for scalping trades.
As had been suggested earlier, there are many clusters of cycles in time, which could allow volatility to increase all through this month.
Trade happy after planning your trade.
1 comment:
can u please elaborate on various cycles u r talking about.
thanx
suresh
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