My weekend post on Nifty suggested that if aint long then wait and go short near the resistance zone where the risk reward favors the shorts as of now… Anyone who has shorted today has a well defined stop loss in the form a today’s high (a few points above the high is a better idea). Let us take a look at the chart below and see if it’s time to be aggressively short or play this one on merit;
The chart above shows a shooting star at the resistance and Nifty’s inability to close above the previous highs. With a wedge of a formation, and the nearest MA, the 20, way below at approx 5290, Nifty has only one thing left for itself, take support at 5350/60 and meander sideways and enable the 20 periods MA to move up and provide a base as it has done in the past. Profit booking can come in the morning for overnight shorts at the above mentioned support; on the contrary more shorting will emerge if it fails to hold the 5350/60!
Like I mentioned earlier each trade is needed to be traded on its merit!!!
4 comments:
manoj sir,
can a long trade not be initiated based on hidden bullishn divergence in 60 min and 30 min cahrt and supports (consolidation range, flag, 5360
Manoj, Hi
Here is some discussion on your charts
http://www.mudraa.com/singlepost.php?messid=58315
Regards
Sanjeev (Sandew)
Sandew Hi,
Thanks for defending my effort and bringing to other people's notice....
No I dont my charts being shared but yest the credit must be given to my blog...
Cheers!!!
Piyush Hi,
Why not " a long trade be initiated based on hidden bullish divergence in 60 min and 30 min chart and supports (consolidation range, flag, 5360"??????
Yes you should but then limit your trade to that particular timeframe and profit objective...if your trade meets its objective...get out...
Remember we trade price and not the indicators..therefore always wait for "Price Confirmation"
Cheers!!!
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