Today was expiry day, we did not witness crazy volatility as you normally see during expiry dates.We began in a subdued manner(yes it was Dow again)and drifted down slowly tryin to bid for our time till Europe gave some signal.As you see in the chart you will see that while we drifted down MACD histogram was tracing a positive divergence.This was followed by positive crossover in MACD lines.After that the price gave a confirmation signal by breaking out of its downward trend line and almost flat 20 period Ema. The price came to retest its low and proceeded in a nice up move.Again if you notice in the chart the 20 Ema almost acted like a trend line support.During the last half hour we made a small double top confirmed by negative divergence in both the MACD and MACD lines accompanied by negative crossover in the MACD lines.The price reached the logical target of the double top and also took support at the trend line before reversing its direction.For serious students of technical analysis todays movement in Nifty was also a good illustration of the Dow Theory!!!Can you figure it out???
In all a good clean day to trade nifty..though it was very frustrating coz it was at a snails pace.If patience is not one of your virtues then today was a long boring story!!!!
In all a good clean day to trade nifty..though it was very frustrating coz it was at a snails pace.If patience is not one of your virtues then today was a long boring story!!!!
2 comments:
Dear Manoj,
You doing an excellent job. Have gone through the blog and find it very interesting. Also, liked your usage of words. You have a unique way to express your understanding. Don't lose the sense of humour that you impart in your writings. Keep it up!!
Best regards,
N. S. Fidai
Dear Noor Bhai,
Thanks for you appreciation.It was a pleasant surprise to have you here.will need your support and guidance.
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