Nifty for 11 Mar 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.

From the pattern on the chart, the bounce of the last two days seems like an upward correction to the fall of the last fortnight, from ~5350 to ~4600.

It is exactly this type of pattern which allows bulls to trap bears to scurry to cover their shorts. Therefore, in all probability, we may see a gap up opening, which could trip the stops of bears around the 4950 regions, which was the previous short term top.

It would remain to be seen how the trading goes today. If the bulls are stronger than bears, we could see a sharp recovery. After a few days, we could see a renewed bear attack, as there are several resistance levels overhead.

The strongest resistance level is the black box ~5400. Thus, we may see some downside correction from there. In all probability, this correction would be the downside correction, which could be used by sidelined bulls to re-enter the market.

Trade happy after planning your trade.