Three days of US market action will influence the market's open. Monday was a down day, Tuesday was a big gainer in America, picking up almost 6% gains. Today, wednesday seems to be consolidation.
We can assume that the Nifty will open with a big gap up tomorrow. The Index has resistance at 2700, and, then at 2800.
Should you buy on dip or fade the gap ? The answer depends on your trading style, & the patterns that develop on intra day charts tomorrow.
The Intermediate trend remains down while the Nifty stays below 2950. Thus, any up move should be taken as a sell on rally. Just dont sell blindly. You need a setup (a technical reason to sell), proper stops, then a trigger. (A trigger is a technical event that confirms the selling, i.e. price falls below the previous hour's low, or closes below support,....)
A setup is a sign of weakness (in this case, when we want to sell on rallies). This could be a double top, a bearish indicator divergence or resistance that holds out.
July 2 2010
4 weeks ago
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1 comments:
of course we can assume that a gap up opening ca happen however that's not guaranteed look at shanghai it ended in red today,also the situation in Pakistan has got a lot worse which might the FIIs nervous
just my naive thoughts maybe lets see what happens tomorrow
thanks for the article though
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