Retracement strategy, a must for traders.
1 week ago
Thursday, February 11, 2010
Monday, February 8, 2010
Sunday, February 7, 2010
Positive Divergences galore..!!(Hour)
(A short term upside possibility)
Nifty has been falling from 5309 for the past 20 days without a meaningful rally or rest. Positive divergences have started showing in some individual stocks as well as the two major indices - Nifty & Bank Nifty. Some stocks have already shown sharp bounce off their lows.
What is in store..? More immediate lows possible..?? When is a confirmation of a "Pause" is known..?? How's the risk-reward status now..?
A short term long play is possible.
If Nifty is resisted @ 4790 - 4815-4835, another low or closer to the lows is possible before the reversal sets in. A mid series rally for a few days..!!
A close above the 5 day ema would be the first confirmation of that pause.
Risk-reward will be to the Bulls favour if a dip comes on Monday afternoon or Tuesday morning.
Remember larger trend is down-Month, Week and Day. Day is oversold without any positive divergence.
Only a positive divergence in Hourly time frame which can last for a few days. Volume action during this expected rally will confirm a reversal in daily.
Stop Loss may be kept below 200sma @ 4640 or 4615 for the short term Longs.
Continue Reading...
Nifty has been falling from 5309 for the past 20 days without a meaningful rally or rest. Positive divergences have started showing in some individual stocks as well as the two major indices - Nifty & Bank Nifty. Some stocks have already shown sharp bounce off their lows.
What is in store..? More immediate lows possible..?? When is a confirmation of a "Pause" is known..?? How's the risk-reward status now..?
A short term long play is possible.
If Nifty is resisted @ 4790 - 4815-4835, another low or closer to the lows is possible before the reversal sets in. A mid series rally for a few days..!!
A close above the 5 day ema would be the first confirmation of that pause.
Risk-reward will be to the Bulls favour if a dip comes on Monday afternoon or Tuesday morning.
Remember larger trend is down-Month, Week and Day. Day is oversold without any positive divergence.
Only a positive divergence in Hourly time frame which can last for a few days. Volume action during this expected rally will confirm a reversal in daily.
Stop Loss may be kept below 200sma @ 4640 or 4615 for the short term Longs.
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