Nifty half Hourly Chart
I had thought the fall would be slow and sideways with a downward bias, but the ferocity of the fall was surprising. The momentum indicators on daily charts have broken the support which was holding since 30th March. This indicates the fall will continue. The wedge target is 3930.
The half hourly oscillators are in oversold territoty and we can expect a bounce before we continue the fall.
My rules for trading are, I take trades only in the direction of the weekly. I was asked whether to go short and I opined that I would not be comfortable going short. Now, if one wants to go short then they can be based on their rules. I am happy with cutting my longs at the precise time, which gave me good profits. I would not like to go with every move that the market makes and go short. This helps me keep my sanity and blood pressure under control. Also my profits from longs are intact.
Happy Trading !!