Wednesday, February 24, 2010

Nifty Future Views!!!

Triangles are known to be very confusing and notorious till the time they give a clear breakout, and that’s the only way to trade them…you do get whipsawed but then that’s naturally expected out of triangles! Na me not giving a write-up on triangles, it’s just that we are witnessing a whole range of patterns and they are indeed Bullish and Bearish (depending which side you are on)!

Reminds of a quote, I have kinda added a few words to the original, so one can relate it with trading;

“Two men saw through BARS (pun intended), One saw the DUST (BEAR) the other saw the STARS (BULL)!!!”

Like I often say Pattern lies in the Eye of the Beholder, let’s take a very myopic view and start with a 5 minute chart of Nifty Future…why starting with 5 minutes chart? Coz it’s been frustrating the intra-traders! What we see below is a nice triangle (a 100 pointer) which has so far given two false HOPES (see ellipses)!

And now we move towards the Hourly chart; this where we start SEEING things!

From the chart above you have the following observations;

  • Patterns Galore; we have a small Triangle (already mentioned above) and this triangle is in a Rising Channel and then of course we have a would be inverse HnS happening!
  • We are trading right at 20/50 periods MA’s!
  • The neckline (green dashed Line) of the WOULD BE HnS and the 200 periods MA are at 4915/20 approximately, posing as a stiff resistance, not to mention the GAP resistance above!

Does this all leave you more confused? It ought to, but if you are of the type that believes in “TRADE WHAT YOU SEE AND NOT WHAT YOU THINK” then things would be more lucid as all break out and break down levels are there in the charts and so are the STOPS!

Another word of caution is that we are into derivative expiry and presentation of annual budget! It’s meaningless to even assume or presume or forecast the direction of the market… the best would be to sit aside and watch the show. Remember that CASH also is a position!

Monday, February 15, 2010

Save Our Tigers!!!

Hmmm… a lot many people might think what’s this post doing on my blog???

Well for starters it’s my blog…Sorry if that sounded rude….but then this was made by my daughter Priyanka Sood (whose in second grade) as a part of her school project and she wanted her Daddy to do his bit and therefore it is here!

Damn we need to do something about it!!! How about shunning and trashing that Chinese talk of Virility and Stuff that Tiger products are supposed to have!

Limiting the use of paper and doing your bit with recycling, would be good enough!

To put it more bluntly “God damn’it SPARE THE TREES”! And that’s just reminds me it’s been a long time since I have seen Sparrows in Delhi!!! L !!!

Gold Views!!!

SnP 500 Views!!!

It’s been a very long time since I posted on SnP 500, infact almost a month, been once again busy with business, as my flower season was on full swing! Take a look at the chart below;

  • Well we did touch and bounced back from the 200 periods MA.
  • We have now on our hands a bearish crossover (after a long time!) of the 20 and the 50 periods MA’s.
  • 1105/1045 is the range now!

If you are a shoot n scoot typo trader then one can buy the supports and sell the resistances with a tight stop. The bulls need to reclaim 1100/1105 (white dashed line) zone to be in charge…till then it’s a ping pong game!

For the rest it’s prudent to wait till this range breaks and with all the talk about the PIGS and STUPID (these are the acronyms of countries going kaput with their debt!) subsides!

Wednesday, February 10, 2010

4810-4825 Fibs At Work!!!

The idea for this post was inspired by a post by Corey! Below is the hourly chart of the Nifty Future with three swing highs (marked 1, 2, 3) and a swing low (marked End)!

As you can see from the chart above that we have paused at a confluence of Fib lines (acting as resistances in this case). What makes this a lil more potent is the placement of the 50 periods MA there. With 4800 being the weekly pivot and 4810 to 4825 being the confluence of resistances, the Bulls surely have a fight on their hands.

Will not say one to go short here but at least one can be a lil bit more careful with the longs!