Daily chartRanges are frustrating and believe me i dont even feel like writing this update because it is a repeat of sorts. But have to put in an update after everyones request so here I am. Seems like we will be volatile within 2661 and 2950 till expiry. I have marked the immediate supports and resistance levels on the chart.
The stochastic oscillator is in oversold territory. This oscillator compares where a security’s price closed relative to its price range over a given time period. The idea behind this indicator is that the closing prices should predominantly close in the same direction as the prevailing trend. In an upward trend the price should be closing near the highs of the trading range and in a downward trend the price should be closing near the lows of the trading range. When this occurs it signals continued momentum and strength in the direction of the prevailing trend. So when the stochastics moves up from oversold territory it signals that prices are no longer closing near the lower range and a reversal is on the way.
So be on the guard and keep stops on shorts . And of course keep stops on longs too since trading without stop losses is suicide in ranging markets.
Happy trading !
4 comments:
Very good chart with nice explanation of oscillators.
Chart with the explanation is giving more clear picture. Thank u for the same and pls continue the same.
So, there is upside possibility is also there on the cards? Expecting your another chart.
Regards
very short term is always difficult to predict. so immdediately there could be an upside but limited.rest i have mentioned in the post
You got it . Even though market Pundits say 2720 is the critical level going by the trend of the market I will place 2661 as the crucial support. I would rather put my bets on going long at 2661 .
I don't expect the market to go below that tomorow. In a range bound market Stochastics is more reliable and since it is in oversold territory I feel one can be bullish at 2661 atleast for a few more days.
Murali
thanx murali for ur views
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