Daily Chart
Half Hourly Chart
Sensex
Today's candle is the classic shooting star which is bearish when occurs after a strong uptrend. Physical features are long upper shadow with a small real body at the lower end of the candle.The candle depicts that higher levels found sellers outnumbering buyers. The reversal of trend is confirmed when the next day is a bearish candle with huge real body.
The sensex resisted exactly at the upper trendline of the rising wedge . This calls for caution since the candle formed at the resistance is a shooting star.
Intraday oscillators moved down after negative divergence and have not yet reached oversold levels. Daily oscillators are in neutral territory except the stochastics which has given a buy from overbought region and show negative divergence. This indicates possibility of further fall.
Moving Averages are still bullishly aligned .
In the present scenario, I would hedge my longs and take a view after the weekly closing tomorrow.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
4 comments:
THANKS MAM
THANKS MAM
How would you hedge your longs? as you say the sl should be around 4550-4620, which is 200 points down? All this sound good in theory buy practially things are a lot different.
you are wrong.it is practical.one can hedge in many different ways. buying a put or selling calls are the most simple of them. hedging essentially is for minimising risks.
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