While the American markets fell on Friday. Monday morning is a different story. Asia is up, while the SGX Nifty suggests a strong rally is coming in the Nifty. A decisive close above 2800 will suggest a breakout from a trading range, leading to 3000 or even 3100. Short term traders should not fight the trend.
Is the bear market over ? This knowledge comes much after the event. I assume this is a rally in a bear market.
July 2 2010
4 weeks ago
Posts
9 comments:
Good morning Sudarshan ji,Because of japan's stimulus optimism tha asian markets are positive.even in us the Govt. will observe toxic assets from banks.
and if we rally today we will come in to overbought zone,can we sell there or what is the idea?
‘Bull-Market’ Rally Has Begun, Templeton Asset’s Mobius Says
Link: http://www.bloomberg.com/apps/news?pid=20601087&sid=alr71LzF0OMg&refer=home
is it true
If it is at all bear market ,what wil be the possibility to nifty touch below 2500 and at what point it wil get support
So sir, What should be the strategy, Can I go long on Bharti?
Sudarshan ji,
I am writing this during market hours (Monday 1.27pm) - as i have a serious dilemma.
(1) I did not have any open position and i had to start afresh during this morning.
(2) Nifty opened up at higher level.
(3) I use 5 minute chart - RSI & BB . So, as per my trade rule I will initiate trade only when the price crosses RSI 50 and also BB mid-price; whether it is short or long depends upon from where it is crossing.
(4) To day morning there was a gap up - and till now I am unable to initiate any trade on nifty, because my trade set-up does not allow me to do so.
(5) Due to this i am missing some good gains.
My query is: U must have also met with such situation many times in the past... and what did you do? -
I take some privilege to ask you, would u please explain what has to be done in this situation and what not?
Would you please elaborate it? This will be helpful to small budding traders like me.
Tnx a million in advance and best regards
Hello Sudarshan ji,
I am fond of technical analysis and posting you for the very first time.My question is about the broader markets and perhaps difficult to be resolved by the amateurs like me.I have noticed a "doji" formation in the nifty daily charts,which all of us know that it is a trend reversal signal.I want to know that what type of confirmations are needed now to believe that the uptrend is over?
Also is my eye catching it right to notice a rising wedge formation in "Nifty futures"chart and also in some global markets like "Nikkai" and "Dow".
Hello sir,
Thanks for your clarifications about the doji. Now when monday morning its going to be a great opening which may take it near strong resistances. What should be the strategy for those
1.who are out of the market(having zero position)?
2.Who were already long in the markets?
3.For the intraday traders?
Good morning sudarshan ji, happy holiday.Your buy on dip strategy for monday worked..i made some profit with that..Thanks.
Today my question is on trendlines.
I was looking at the weekly charts of sensex from 1998 till today.I have noticed a few things in common about the previous bear market and this one.
Sensex made a H of 6150 in feb2000 then a LHLL formation and a low of 3096 in apr2001,held this low for 5mnths n broke on sep2001 n made a new L of 2594.
The long term TL joining 6150peak n 4462peak of feb. was breached on the upperside n market went into a consolidation phase.
Again a high of 3758 then a higher L of 2828 n then a lower peak of 3416 were made in the succesive mnths(perhaps a triangle like formation).
But once the trendline joining the peaks of this consolidation phase at3758 and 3416was breached on the upper side there was no looking back and sensex made a new high of 6249.
Now in this bear phase:
Longterm TL joining 21206-15106 was breached in march(with a diference that mkt had already been in a consolidation for the last 6mnths whereas in 2001 market went into a consolidation after breaching longTL).Short term TL joining the peaks of this consolidation phase at 10469 jan-9724 feb and TL 10945 nov-10469 jan were breached in march.
The difference in the charts of these two bear mkts is the time diference,everything is happening two fast this time..well! some people say that now mkts are more mature..well idun know.
Now the question arises do the above data to some extent giving a signal that the bear phase is over or a closing above 13000 is required or an investor should just sit in cash till it reaches 21000 again?
Sometimes we keep our SL order below an important support ,which say, has been triggered.
Now..
case 1. Stock brokes support line in just one 5min. candle and starts moving above that support line in the next 5 min. candle.
case 2. Stock remains below that line for couple of 5 min. candles and then starts moving above that line.
Would it be prudent to enter the stock again with a SL order below the low? or would that mean a signal for more downside?
Please clarify on both intraday and daily price action basis.
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