Nifty has made a low of 5306 today which is a long term monthly/weekly support. Holding 5300 - nifty might try to attempt a pause. But on break of 5300 - nifty would swiftly reach below 5100 levels in a weekly/ Monthly perspective. How long ot would hold 5300???? - Market only can give us the answer.
Monthly Charts:
CHANNEL SUPPORT AT 5300 LEVELS. Break of 5300 - severe fall on cards.
Weekly Charts.:
A Wolfe Wave pattern is completed. Also Nifty at Channel Supports.
If any pause in downmove is to occur then 5300 must hold. Also 61.8% retracement for the rise from 4770 - 6229 is 5327. This being a golden ratio is likely to provide the pause required.
High Risk Aggressive Longs to be attempted with Stirct SL of 5290 - only based on channel support - which could be easily broken considering the nature of the fall.
12 comments:
Hi Satheesh, wishing you happy RakshaBandhan for good health, prosperity and peace.
I have entered shorts late at 5420, should i hold the same, pls suggest, thanks a lot
Hi Parimal,
Thank you :) Partbooking at today's low would have been prudent. Current Day Lema is 5435 a close above it would be a pause in downmove. Originally you must have had a reason to short at those levels - maintain it - else use Day LEMA.
Thanks a lot for your very kind suggestions. i missed out again at lows of the day, i generally do that and so feel bad! considering strong downtrend, i may hold for this retracement from Golden Ratio till my cost price is hit.--regards
Booked out having small profit. Now pls tell me where to re-enter shorts, thanks. may i short at 5436 (Dlema), or 21hrsma which is quite far (5514)! sorry to bother you!
Parimal,
You have an option of DLema @ 5435. If this is the third wave going on then the retracements would not be very high to get much higher levels.
Presently, Shorting near Day LEma with +/- 20 Points will give a small SL. so considering this factor - a Short near 5410-30 would be apt with only a 10-25 point SL. This is how I manage my trades. If it closes EOD above Day Lema, then I would look out for trading oppurtunities.
Thanks again for nice elaboration on trade plan. shall short near Dlema with small SL.
I have shorted near 5415, let us see how it works. thanks and regards
Hi Satheesh! so far this trade worked, i think i shall hold it or will book out or even re-enter thinking it is '3' going! your timely help is highly appreciated.
Mam
The breakout was a failure again. Can u throw some light on TM? Is it possible for a stock to be in a range for so long?
Hi Satheesh, today i am a bit confused on Nifty, wave count and trend are indicating more downside, while there are positive divergences on hr and day charts and OI signals ST bullishness. pls throw some light, thanks
again there is down-sloping (falling) wedge being formed!
Hi Parimal,
This is the 3rd wave going on. Divergences are likely to appear in thirdwave - but always it should be corelated with the TA parameters. For instance initially an EOD close above Day LEMA is a must for a pause in down move. So once that is attained, then we would look for support of Divergences to go for an aggressive Contra Trade. Till then following trend would be the best way to trade.
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