Took a look again at the volume analysis I presented a few weeks back and felt good about it. So got the fillip to analyse the chart once again. The volumes since September has been falling on all up weeks . High volumes were seen on week ended 9th October which was a down week.Profit booking by smart money which obviously got in early .
Weekly Chart
Only conclusion be cautious as volumes are not supporting the rise.Negative divergences on weekly charts are intact.The trend however is still up. So do not trade short. Trade long lightly , hedged and with a stop loss of 4900 on a closing basis.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
4 comments:
Mam,
Your contrarian analysis is heartening as it would be easy to carried away by the euphoria in mkts.
I have a question on volume that you have displayed. Is it the total cash mkt volume or futures mkt volume?
Like "Pavlov's dogs" we have become trained to buy on dips. I am not sure if the next time bell rings -- the food will come or not!!
-GD
it is cash market volume
Blog looking more good like your analysis :)
Regards
thanks sujata for keeping my spirits up
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