Tuesday, June 10, 2008

Nifty Recap For The Day!!!

Hic hic it’s late for today’s post. Not my fault, a friend just returned from US and bought a bottle of Jim Beam. This was my first fling with US bourbon and I kinda liked it (Cheers!). So this post can, or rather should, be excused as ramblings of an insane (drunk) mind. We opened weak and made the lows for the year! Damn one more number (4369) now to watch out for. Nifty drifted down, every pull back was met with resistance at the 20 EMA. During the last hour we did get a very low risk trade in nifty long. We broke out of the falling trend line (it does look like a channel too!). This was accompanied by the break above the 20 EMA and this was further confirmed by bullish divergence on the MACD histogram as well as the MACD lines. On the Daily chart we have made a sort of a hammer. This action only points out in two directions;

  1. The bears had the will to take the prices lower but lacked the conviction to stay put there; or
  2. This is just another fishing expedition by the bears to lure baby bulls (like me) into complacency and fool with randomness!

With my limited gray cells and understanding of the markets I am thoroughly confused and would like to take the most difficult way out….yeah just tryin2sit on cash for few days!!! Till then Jim Beams is not bad for company…Cheers!!!

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