Ooolala! 4050! Nifty Recap For The Day!!!

“Ooolala” this how a friend of mine reacts when he has a field day in intra day trades. I guess his exuberance is sometimes infectious hence this title. A quick recap of the Nifty action today (promised to cook a sumptuous dinner for the kids!), and more deep analysis we reserve for the weekend. Nifty opened strong following the global cues, and that was it. After that it frustrated a lot, and confused a lot many traders, into which direction to trade. No wonder a few stop losses were gunned on either side. But once it broke out of the gap resistance there was no looking back (by the way for the chart readers this was also a breakout from a small lil inverse H&S on the 30 minutes chart!). The shorts were scurrying for cover and new baby bulls were everywhere. The hourly on the right also shows almost a vertical move up. Like mentioned yesterday 4050, the bulls not only reclaimed it but also managed a close above it. There is something interesting developing in the hourly charts. Yes you got me! It looks we just might have a big inverse H&S. It would be good if we retest 4000/3980 and consolidate from there, then we would have ourselves the right shoulder of the inverse H&S formation! Having said that I would like to be excused as a budding amateur and a naïve chart reader, for forecasting too soon (I guess that’s the problem with us newbie’s). Anyway enough for today, we mull over Nifty later on this weekend. All the calculations can get really awry, considering the fact that our government is facing a vote of confidence next week. So Volatility, I guess will be the flavor of the season.

"A journey of a thousand miles begins with a single step."

Confucius

Hmm to be trader....start by taking that first step…start reading charts!!!