Wednesday, September 10, 2008

Nifty Recap For The Day!!!

Nifty is getting boring and frustrating and even a pain to write about on daily basis as there is nothing much happening (remember how I kept on harping about ADX in last couple of my posts). The major make or break levels are marked so I guess as the pros say Patience is what one needs. We are witnessing intra day volatility and price is compressing more and more waiting for that one decisive breakout!

The daily chart below epitomizes the compression of prices I was talking about; we have made two inside bars in relation to the bar we made on the 8th of September. As of now we are back in a range and now the highs and lows of the 8th September bar needs to be taken out decisively on either side. We are desperately managing to hold on to the 20 periods MA. As of now 4370/50 is back in the reckoning as strong support whereas the 4450/80 is the resistance zone.

The hourly chart below has the HH and HL sequence on as of now, but what’s more worrisome is that we are breaking one trend line support after another. On the hourly chart the price is just nesting above the 200 periods MA and last major trend line support is at 4320/25 area!

Like I had always mentioned that now days we are just acting or reacting to the global markets, so it’s increasing becoming difficult for a trader to take a correct call. With so many gap ups and downs it’s only prudent if u play intraday (I know easier said than done with so much volatility around) or just sit patiently on the sidelines, do some research, refine your system, or simply take a break.

"The future belongs to those who believe in the beauty of their dreams."

Eleanor Roosevelt



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