Update - 26th April 2.15 PM
Nifty, up by 100 odd points, however, the market breadth (Advance Decline ratio) is a cause of concern as Declines are more than Advances
Bulls can ideally book a partial profits and trail stop loss at cost.... CMP 11740...
Cheers
Hi All,
As per the last update of 3rd April 2019, Nifty after the Engulfing bear candle on daily charts, came down, but could not break and sustain below the support area mentioned near 11560-11640 (low of 11549 on 8th April followed by a strong pull back to close the day above 11600).
After creating this low, Nifty rallied further and created a Life time high near 11856 on 18th April, however the same was not sustainable and bears pushed off prices lower and in 2 days after that, created a low, yet another near 11560 mark.
It is been consistently seen that Bears are trying to dominate the action, however Bulls are refusing to give back the control.
Though, Nifty creating an all time high is a welcome sign, but dominance of bears at every such high can be a sign of concern.
However, while creating the latest swing low near 11564, Nifty has given a positive Hidden divergence on RSI (a different perspective of looking at divergences, largely opposite of the traditional divergences), where in RSI has created a lower low on 23rd April (as compared to 8th April), but interestingly, Nifty created a slight higher high on 23rd. This is a bullish sign and which in a way also reiterates my importance for the 11560 levels. This exact set (hidden divergence) up was also there between the bottoms of 25th March and 8th April, and could be one of the reasons for Nifty not breaking the lows.
Suggested Plan of Action- Though, today's sell off of more than 100 points from the high is not a good sign for bulls, still Risky traders, can go long / on dips with a strict stop loss below the recent swing low of 11549, with initial target being the life high of 11856 (immediate resistance near 11800). this would be a stop loss of almost only 100 odd points / < 1% for Nifty. Immediately will have supports near 11600 mark which is also a 78.6% retracement of the recent rally from 11564 to 11796)
Personal View - An once in 5 year, hence critically important event round the corner, I personally feel the markets are going to be extra volatile and traders need to act like a Chameleon (keep adjusting levels for targets or Stop losses more often) and dont marry a particular stock / index position. This sounds very simple, but trust me.... It's NOT....
Cheers
Nifty, up by 100 odd points, however, the market breadth (Advance Decline ratio) is a cause of concern as Declines are more than Advances
Bulls can ideally book a partial profits and trail stop loss at cost.... CMP 11740...
Cheers
Hi All,
As per the last update of 3rd April 2019, Nifty after the Engulfing bear candle on daily charts, came down, but could not break and sustain below the support area mentioned near 11560-11640 (low of 11549 on 8th April followed by a strong pull back to close the day above 11600).
After creating this low, Nifty rallied further and created a Life time high near 11856 on 18th April, however the same was not sustainable and bears pushed off prices lower and in 2 days after that, created a low, yet another near 11560 mark.
It is been consistently seen that Bears are trying to dominate the action, however Bulls are refusing to give back the control.
Though, Nifty creating an all time high is a welcome sign, but dominance of bears at every such high can be a sign of concern.
However, while creating the latest swing low near 11564, Nifty has given a positive Hidden divergence on RSI (a different perspective of looking at divergences, largely opposite of the traditional divergences), where in RSI has created a lower low on 23rd April (as compared to 8th April), but interestingly, Nifty created a slight higher high on 23rd. This is a bullish sign and which in a way also reiterates my importance for the 11560 levels. This exact set (hidden divergence) up was also there between the bottoms of 25th March and 8th April, and could be one of the reasons for Nifty not breaking the lows.
Suggested Plan of Action- Though, today's sell off of more than 100 points from the high is not a good sign for bulls, still Risky traders, can go long / on dips with a strict stop loss below the recent swing low of 11549, with initial target being the life high of 11856 (immediate resistance near 11800). this would be a stop loss of almost only 100 odd points / < 1% for Nifty. Immediately will have supports near 11600 mark which is also a 78.6% retracement of the recent rally from 11564 to 11796)
However, Nifty sustaining below can mean a sell off thereafter to 11300-400 levels and can indicate an upper hand of Bears
Personal View - An once in 5 year, hence critically important event round the corner, I personally feel the markets are going to be extra volatile and traders need to act like a Chameleon (keep adjusting levels for targets or Stop losses more often) and dont marry a particular stock / index position. This sounds very simple, but trust me.... It's NOT....
Cheers
No comments:
Post a Comment