Could not write one day's post because of social engagements.
Nifty , in the meantime, followed the expected trajectory:
Previous Post:
Today's Update:
.png)
And also
Previous Post:
.png)
Today's update:
.png)
And based upon the above chart wherein an important Trendline, 34 Day EMA and median is getting tested with minor positive divergence appearing on smaller time-frames, a bounce is expected.
And in view of the bounce,6072 assumes significance and a tick above it would rule out the chances of the downmove labelled as ABC getting morphed into an Impulsive 12345.
My personal opinion is that while levels of 6055 (corresponding to 5DMA and completion of previous subwave of downmove which started from 6052.8) may be seen but 6072 would not be breached and then it would be followed by a larger downmove of minimum 115 points.
And the weakness in Daily Charts is supporting this point of view:
.png)
However, there are two observations which donot gel with the above conclusion:
1. FII inflow in January was maximum;
2. American Indices have made all time highs---
And so I wish to repeat that 6072 must be watched and used as stop-loss for shorts to be created at 6053+ levels. And before creating shorts one must look out for negative divergence(on 5 min & 15 min t/f). If negative divergence doesnot make its appearance, donot short blindly.
Nifty , in the meantime, followed the expected trajectory:
Previous Post:
.png)
Previous Post:
.png)
Today's update:
.png)
And based upon the above chart wherein an important Trendline, 34 Day EMA and median is getting tested with minor positive divergence appearing on smaller time-frames, a bounce is expected.
And in view of the bounce,6072 assumes significance and a tick above it would rule out the chances of the downmove labelled as ABC getting morphed into an Impulsive 12345.
My personal opinion is that while levels of 6055 (corresponding to 5DMA and completion of previous subwave of downmove which started from 6052.8) may be seen but 6072 would not be breached and then it would be followed by a larger downmove of minimum 115 points.
And the weakness in Daily Charts is supporting this point of view:
.png)
However, there are two observations which donot gel with the above conclusion:
1. FII inflow in January was maximum;
2. American Indices have made all time highs---
And so I wish to repeat that 6072 must be watched and used as stop-loss for shorts to be created at 6053+ levels. And before creating shorts one must look out for negative divergence(on 5 min & 15 min t/f). If negative divergence doesnot make its appearance, donot short blindly.
No comments:
Post a Comment