I am back after a long break from the markets and I am glad I didn’t miss much! You see sometimes money in hand is money earned too! Well it’s been quite an eventful weak (pun intended) we’ve had, the much awaited stimulus package is out, our own interim budget presented (nothing noteworthy about it though) and now we are almost done with the results also. So what’s next? Nothing! My guess is as good as anybody’s. We might now play day to day or as some would say DOW to DOW!
One look at the daily chart of Nifty we can see that this is the third time we have knocked at the blue trendline; third time lucky or just bidding for our time? Anyway this was a small opportunity to play long with a very tight stop just below the trendline. The immediate resistance staring right at us is the 20 periods MA at approx 2818 and the 50 periods at 2880. I guess its time to play take small risks for small profits, a penny here and a penny there makes a POUND!
The hourly chart which encapsulates the real action shows why I had these fantasies of going long. The price is at demand (support), it’s a low risk trade and what the heck it’s worth taking. The over head resistances are very nicely lined up at 2818(20 periods MA), 2840/50 (hmm this is lil worrisome, the 50 and 200 periods MA’s are in tango with the 38.2% retracement).
"Our greatest joy is not in ever falling, but in rising every time we fall." Confucius
No comments:
Post a Comment