At one point I felt that it would take out 5367, but later felt that it was a shake-out designed to catch weak hands. You can catch my real-time reaction to that move in the comments section of the last post.
Viren and I felt strongly that as long as price closed above 5367 our reference level for the Nifty as well as the US futures closed above 1083 levels, there was no need to push for any shorts.
Incidentally the US futures are currently at 1093 levels, after having bounced off 1084 which is the low thus far.
Here is the chart of the past two days of action in the Nifty Future :
Even though the move today was a high volume downmove, price still needs to confirm it the next day. In profile we always look at close v/s open for a relationship from one day to the next
The chart shows the swift move down from 5408 to 5384 matching the intensity of the move up from the same levels yesterday.The arrows show that the profile here is not developed or a low trade facilitation zone.
Ideally the market should auction between these two levels tomorrow in the first half before deciding what to do at 5308 which is to go up or come down.
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4 comments:
Blogosphere which was calling for higher levels and a general positive outlook has got mixed views today.
Strong arguments are being made for moves on both sides.
Volatilty is set to increase with these arguments. Vix was up 5 % today.
@ Viren,
Speaking about mixed views, I got an email today of a EW count which was completely opposite to yesterday's bullish argument.
The same chart now showed a bearish possibility.
I mean, we are at the same level as Monday, how can people not see the bluff which goes on in the name of analysis nowadays.
really happy that I have found this blog and you guys, so much consistency in your analysis.
Gm Shai & Viren.
GM Musti.
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