Hi All,
As expected Nifty bounced back from the supports near 5450 and we have captured a nice upmove....
As per earlier posts we were long near 5550 with 5450-70 as Stop loss.....
ITS TIME TO BE CAUTIOUS
Though the short term bias is still fairly optimistic.... I observed a terrible event in quarterly charts....
A negative divergence is already in place on quarterly charts which has been triggered.... As per rulle we can sell on a conservative basis when the daily prices become overbought. Current RSI for Daily is somewhere near 55-58...... If the same goes above 60 it can be a good opportunity to take a sell trade. It would be a cherry on the icing if we get a -ve diveregence on daily charts as well...
So, would like to change my view for medium term.....
With a resisatance above 6111-6120...... Nifty targets can be 5290-5000 and may be even 4500.....
However, since the risk is too big, almost of 350-400 points, a sell on rise strategy can be followed or if the smaller time frame charts like daily or weekly gives a sell we can make the best of it.
On a safer side any short trade should be executed after a cause for it like divergences on smaller time frame charts, or sell based on some other technique.....
Cheers
Hrishi
As expected Nifty bounced back from the supports near 5450 and we have captured a nice upmove....
As per earlier posts we were long near 5550 with 5450-70 as Stop loss.....
ITS TIME TO BE CAUTIOUS
Though the short term bias is still fairly optimistic.... I observed a terrible event in quarterly charts....
A negative divergence is already in place on quarterly charts which has been triggered.... As per rulle we can sell on a conservative basis when the daily prices become overbought. Current RSI for Daily is somewhere near 55-58...... If the same goes above 60 it can be a good opportunity to take a sell trade. It would be a cherry on the icing if we get a -ve diveregence on daily charts as well...
So, would like to change my view for medium term.....
With a resisatance above 6111-6120...... Nifty targets can be 5290-5000 and may be even 4500.....
However, since the risk is too big, almost of 350-400 points, a sell on rise strategy can be followed or if the smaller time frame charts like daily or weekly gives a sell we can make the best of it.
On a safer side any short trade should be executed after a cause for it like divergences on smaller time frame charts, or sell based on some other technique.....
Cheers
Hrishi
