Thursday, April 23, 2009
Reigning The Nifty--24th April,2009
"I would not recommend going bearish 'naked' as the fall seems " hesitant" " and it proved rightly so. I hope my readers had followed a similar strategy.
Once the Nifty broke out from the opening high of 3353 and then there was no looking back. The falling wedge proved it's bullishness once the resistance of the wedge at 3371 was was broken. 61.8% was retraced of the fall from 3511 to 3297.
The three breathers that I am talking about have taken 3, 4 and 5 days. Each time the breakout from the ranges have been decisive with a huge bullish candle.We have to see whether this time too the huge bullish candle formed today will be able to take the Nifty across 3511 invalidating the bearishness of the shooting star on weekly charts.
Trading above today's high of 3440 will take the Nifty to 3511. The target for the falling wedge is wedge high point 3511-wedge low point 3297 = 214 + 3371 breakout point = 3585. Further targets are 3648-3740 marked on the charts.
Yes, the chameleons can change colour from red (bearish) to green (bullish) with a stop loss of 3300 as the break is from a bullish pattern and the Daily and Weekly charts are still in "buy on dips" mode. Red bears who are short on break of rising wedge need not turn redder in anger. If you are still short, keep astrict stop at 3511 levels. Accept market moves as they come to make trading emotionally easy.
Look for action around 3500-3511 levels as scaling these levels can mean resumption of the upmove. The 3300 level is significant to call an intermediate reversal if and when taken out.
Happy Trading !!