Nifty for 14 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.

The chart says it all. This last downswing has been not as large as the previous down moves. Further, on a short term basis, we see a parallel channel moving down. This time the down swing has avoided the downward blue line.

There can be one simple reason for that. That today is a weekend, and normally short positions are unwound to avoid news based volatility over the weekend.

On the other hand, today we see some positive change in sentiment. Normally I would be very enthusiastic with a positive change in sentiment. But for the last few weeks, the market has flattered to deceive.

Today is actually a bottom fishing paradise. If there are some gutsy short term traders reading this, I may be inclined to encourage it. However, for the more conservative, I would suggest waiting for the ~4900 levels to be violated on the upside. For the cautious traders, it may be suggested that we allow the ~5020 levels to be violated and then buy on a dip.

In any case, we could trade with a stop loss at 4560.

Trade happy after planning your trade.