Half Hourly Chart
Daily Chart
Twin Dojis after a swift runup was truly ominous and we had our anticipated down day today correcting 144 points from yesterday"s close intraday.
Observations
Inspite of the swift fall by 144 points, support came in around the 23.6% fibo level of rise from 3918. Supports are at at 4380 being the previous low made during last week's pull back. 38.2% retracement levels are at 4335. If these levels do not hold we may see 4150-4200 levels.
The rising wedge target is around 3906. Nifty has moved back into the red channel suggesting chances of touching the lower trendline which coincides with the rising wedge target. However the intermediate term is still not bearish so we may focus on the target of 4380- 4335 and then take a view from there.
Since targets are not always achieved one should use a trading stop loss to gain maximum from the downtrend.
Observations
- Broken below upper trendline of channel shown in red on daily charts, thus opening the possibility of correcting to the lower trendline .
- The breakout from downtrendline joining all time highs of January 2008 and highs made after Budget in May 2009, proved to be false.
- Breakdown from the rising wedge shown on daily charts maintained for second consecutive day throwing up a technical target of 3906.
- On daily charts Stochastics has given a sell from overbought region and the RSI14 has turned down without reaching overbought levels. Intraday oscillators moving up from oversold levels
- Intraday short term moving averages bearishly aligned wheras on daily charts all moving averages continue to be bullishly aligned.
Inspite of the swift fall by 144 points, support came in around the 23.6% fibo level of rise from 3918. Supports are at at 4380 being the previous low made during last week's pull back. 38.2% retracement levels are at 4335. If these levels do not hold we may see 4150-4200 levels.
The rising wedge target is around 3906. Nifty has moved back into the red channel suggesting chances of touching the lower trendline which coincides with the rising wedge target. However the intermediate term is still not bearish so we may focus on the target of 4380- 4335 and then take a view from there.
Since targets are not always achieved one should use a trading stop loss to gain maximum from the downtrend.
Lakshmi Ramachandran
www.vipreetsafetrading.com
8 comments:
THANKS
Dear sir,
I SHORTED NIFTY FUTURE
AUG @ 4578 . Thanks* as you advised me i kept SL 4693.
Todays fall i cover 50 %
Short postion , balance is open requesting you plz guide me regarding SL.
Awiting your kind revart.
Thanks dnes again.
Abhishek.
since you are already in profit you could use a level which locks in part profits. for example 4531 is the 61.8% retracement level so tradiing above this level could lead to more upside. so you could keep your stop loss around this level.
MAM AS YOU WROTE TODAY-Inspite of the swift fall by 144 points, support came in around the 23.6% fibo level of rise from 3918. PLEASE KINDLY STATE THIS PARTICULAR LEVEL AS I SEE 4380 IS MARKED A SUPPORT LEVEL IN CHART WHICH PREVOUS PULLBACK AND 23.6 FIBO LEVEL OF 4602. THANKS IN ADVANCE
sandeep
thanks have put up the corrected chart
BIG THANKs .
@ abishek - u r lucky today it seems, as she is free she gave a good advise @ right time.. in future??? Will it happen always? It's better v have to learn something from the posts to take our own decision..
@ sandeep - It's better to read her previous archieves, especially her comments, lot of hidden gems are there it's your talent to catch it.. and note it down..(simple lessons)
No hardfeelings pls.. just pointed out for your sake..
Thanks and regards
sujatha is right
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