Hi All,
Though Nifty saw a minor pull back of around 100 points after triggering the entry (11600) for a Hammer like candle as mentioned in the earlier post, it could not sustain the upmove and witnessed a massive sell off from the levels of 11700.
Out of the previous 9 trading days, bulls could only manage a single green candle on the charts. The sell off was so powerful that it did not show any respect whatsoever for the important support area near 11100 (weekly support of 2nd week of May) and closed lower than that near 11085.
Now going ahead, important levels to watch out for would be....
1. Weekly Supertrend support near 11050-60, a close below which would mean more pain for bulls.
2. 11040, a 50% retracement of the entire upmove from 10k to 12.1k.
3. 11000, daily swing bottom (support) in March 1st week.
4. 10950-11000, rising window support (upward gap) on daily charts.
5. 11000 also being a psychological support level
Which means the area of 10950-11050 has the confluence of many support points and I feel would be a the ray of hope for bulls, a fall below which might mean more pain in the offering for the bulls which might take Nifty to lower levels of
In past 4 days, markets have opened positive and closed in negative territory, hence there seems to be no respite for bulls without any bullish implications.
However, RSI has really become oversold near 26 (which is below 30), and is in 20s only after October 2018, therefore a bounce can not be ruled out (if and only if there is any bullish evidence). so shorting at current levels may not be a good idea.
In a nutshell, it is advisable to be cautious for trading on either sides and strictly stick to a rule based trading (with predefined entry, stop loss and targets) with proper money management.
Will keep you all posted for any material developments going forward...
Cheers
Though Nifty saw a minor pull back of around 100 points after triggering the entry (11600) for a Hammer like candle as mentioned in the earlier post, it could not sustain the upmove and witnessed a massive sell off from the levels of 11700.
Out of the previous 9 trading days, bulls could only manage a single green candle on the charts. The sell off was so powerful that it did not show any respect whatsoever for the important support area near 11100 (weekly support of 2nd week of May) and closed lower than that near 11085.
Now going ahead, important levels to watch out for would be....
1. Weekly Supertrend support near 11050-60, a close below which would mean more pain for bulls.
2. 11040, a 50% retracement of the entire upmove from 10k to 12.1k.
3. 11000, daily swing bottom (support) in March 1st week.
4. 10950-11000, rising window support (upward gap) on daily charts.
5. 11000 also being a psychological support level
Which means the area of 10950-11050 has the confluence of many support points and I feel would be a the ray of hope for bulls, a fall below which might mean more pain in the offering for the bulls which might take Nifty to lower levels of
- 10800 (61.8% of the retracement for the upmove mentioned above)
- 11720-10550 (Daily support)
- 10450 (78.6% of the retracement for the upmove mentioned above)
- 10333 a daily bottom.
In past 4 days, markets have opened positive and closed in negative territory, hence there seems to be no respite for bulls without any bullish implications.
However, RSI has really become oversold near 26 (which is below 30), and is in 20s only after October 2018, therefore a bounce can not be ruled out (if and only if there is any bullish evidence). so shorting at current levels may not be a good idea.
In a nutshell, it is advisable to be cautious for trading on either sides and strictly stick to a rule based trading (with predefined entry, stop loss and targets) with proper money management.
Will keep you all posted for any material developments going forward...
Cheers
No comments:
Post a Comment