The Nifty starts yet another up move, which most technicians (including me) are calling a bear market rally.
Please remember that we trade the market, not the terminology. A rally is when prices go up. That's happening now. So, we buy. On dips and on breakouts. Now, there will come a trade that will not work out, where we will buy and the market will fall. Till that happens, traders should ride this small rally. After all, all big moves start in a small manner.
The Nifty has moved above its 20 period MA today. If the index were to rally towards the upper bollinger band, that gives a target of 2900 for the Nifty. A failure to touch the upper band will be a signal that the bear market is alive and kicking.
The next resistance for the Nifty is 2800. Traders may wish to step aside and let the market decide if it wants to move above this resistance area. if it does, then buying is suggested.
Have Fun!
July 2 2010
4 weeks ago
Posts
8 comments:
Hi Sudarshan
I have been following your blogs and also your views on Moneycontrol from a long time.
Just a few days back you had told on moneycontrol that "I am not even looking at 2500 anymore.. Nifty will find support only at 1800-2000". Do you still see that happening? Any time frame when new lows will be formed? or you think markets have found the bottom? I know you just follow the trend, but any thoughts on my questions will be much appreciated.
Thanks,
Niranjan
By weekend ,if u please explain about these bollinger points it wil be helpful.
Today people may take profits,after what?down trend resumes or?
what is the upper bollinger band point?
Have a great day ji
Hi Sudarshan,
I've been a close follower of your comments since long. Today you have referred to the upper limit of bollinger bands as a possible resistance, can you please help us with the indicators you use for your analysis along with the settings so that we could improve our trading skills.
Thanks and wishing you the best in life.
Sudhin Bathija
Hi Sudarshan ji,
Can you please tell me which software you use for trade analysis and which platform for trade?
Many thanks!!!
Gurvinder
Jeff DeGraaf, ISI Head Of Technical Analysis Research, the #1 analyst in his field as ranked by Institutional Investor magazine suggests that charts show that markets are going higher for the next 60 days and “We’re setting up for one of the biggest bear market bounces that we’ve seen over the last 100 years,” See at
http://www.cnbc.com/id/29724434
Hello sudarshan sir u have given great insights on trading can u also give some insights into investment.what are the indicators,time frame, are there any stops,if u can give an example with charts.Thank you
Hi sir
you are giving a nice picture of nifty move and struggle
thanks
sudarshan ji .i found a good and useful book about the psychological aspects of trading and how to improve them .the bookk is named disiplined trader by mark douglas and is really helpful.if you have read it .plz apprise us all about some of the psychological aspects of trading
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