Monday, September 29, 2008

Nifty Recap For The Day!!!

Weak global cues wreaked havoc in the markets; the much touted bailout plan by the U.S. government now seems too little and too late. Too many skeletons are tumbling out of the cupboard, too much muck is still floating around and now this has become an epidemic of sorts with news from all over the world of sick financial institutions either being bailed out or nationalized. There is still more pain left and I wonder if we can get rid of that sinking feeling any time soon.

Anyway let’s take a look at our intraday action by taking a peek at the hourly chart below. We have had almost a vertical down movement from the recent highs. Got ourselves a new low but the last minute rally gave us a decent close for the day. The prices have stretched to far below the MA’s (value area) and now they can only do two things now. First either pullback to the MA’s or drifts sideways and let the MA’s catch up with the price. The overhead resistance is at 3970 and 4050 (a quickie kind of pullback is not ruled out), and as for the bottom anything can happen below 3780.

Today we have made roughly 500 new 52 week lows which are suggestive of widespread panic and a further fall. A panic sale is coming and some shopping can be initiated, I repeat I said SOME shopping like maybe 20 to 25% of the funds can be invested in your favorite stocks.

"You cannot escape the responsibility of tomorrow by evading it today."

Abraham Lincoln



2 comments:

Ashish said...

Hi manoj,
i started following ur blog recently n find it very informative.
i am also a new learner of TA n have a question.

you normally seem to use MACD with ur analysis, whats the values of MACD u have used in above mentioned charts???

Also, being a new bee, lot of people seems to be using different MACD values , but no body seems to explain the reason behind that.

Being very new to TA, it would be helpful if you could explain me why also u have used that particular values??

thanks

Tryin2Trade said...

Ashish Hi,
First of all don't follow my blog in fact start one of yours :). I am also a newbie like you, as regards to the MACD I use the standard parameters 12/26/9 and they seem to be doing fine. Many people have different parameters which suit them so I guess it all boils down to the parameters which one is comfortable in using.
Regards