Tuesday, August 4, 2009

The bull roars like a lion

This is my second post for the day. The earlier post can be read at trading-for-living .
Our markets are roaring like a lion. A significant resistance level around 4760 is now coming up for inspection. It is reasonable to assume that a breakout from this resistance will signal confirmation of the large bullish head and shoulder pattern visible on the weekly nifty chart (or, cup and handle, if you view it that way).

With such strong upside momentum, short selling is not a good idea. Traders should also understand that markets are extended. Sudden sharp declines can take place anytime. I do not know if selling such declines will work. but protecting your long positions is neccessary.

Tuesday, today, may well see the Nifty make a short term top.

Cheers!

2 comments:

rajamani said...

hi sudarshanji,
at which point in weekly charts we come to the conclusion that we should do buy on dips (or sell on rise)


regards
rajamani

Junaid said...

Is GOLD again headed to break $1000. Peter Brimelow comments. here.
http://www.marketwatch.com/story/is-gold-again-headed-for-1000-break-2009-08-03