Alls Well That Ends Well !!!! Nifty Recap For The Day

This one goes for the Decoupling Theorists. With almost no positive cues from the world markets, we have held up on our own today. We opened, with a little bit of gap down, and promptly moved to fill it. An attempt to take out the all important resistance (4740/50 levels) in the morning failed. Nifty drifted to test the lows, and in the process made a higher low. This also gave us a Bullish Hidden Divergence. For the benefit of friends who are ignorant of the above term I will give a brief here:

• Bullish Hidden Divergence as the name suggests is bullish in nature!
• What is it? We get Bullish Hidden Divergence when the price makes a higher low and the indicator makes a lower low.
• What does it indicate? It indicates underlying strength. Normally occurs during retracements in an uptrend. Nice to see during price retest of previous lows. “Buy the dips”. Good entry or re-entry!

It paid to trade this set up. What’s more important about today’s move in the last session, if you look at the chart on the left (30 min chart), we attempted a breakout from a symmetrical triangle (marked in red lines). Another thing interesting about this symmetrical triangle is that, it is a part of a larger pattern…bullish inverse H&S! I don’t know how we might do tomorrow, but given the look of the charts, and if we are well enDOWed ( Dow decides to play ball), we just might see 4850/4900.

"Yesterday is history. Tomorrow is a mystery. Today is a gift. That is why it is called a Present."

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