Monday, June 14, 2010

Nifty closes above 5150 resistance

Today is the third day of rally, with the Nifty breaking out of the 4970 - 5150 trading range, closing at 5198, decisively above resistance.

The Index has made a pattern of higher highs, higher lows, which is the sign of an uptrend. The Nifty had earlier broken down from what appeared to be a rising wedge. A rally has now brought prices near the apex of the wedge (5200), which is the make or break level for the wedge.

How do we trade: Assume that the trend is up. Wait for dips to go long. If this is a bull trap, which means that there is a false breakout, then traders will be confronted with losses, hence our suggestion to wait for dips before going long.

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bhaskar said...

Dear sir,
at the outset let me thank you for the support you have always provided to us. i have been following you for quite a while now and it is the first time i am writing on the net ever.
i would like to admit saying that i am a BEAR at the present juncture and i have been so since august last year. i have made a notional loss but i still stand by my conviction which is that the markets will go down.
sir, i have always believed that the markets do retrace, so if that is true the retracement from 8000 sensex to 18000 sensex will take us broadly close to that 11000 - 12000 mark. but it is also true that we donot forsee any such thing which can take the markets that lower. every crisis comes and goes and the markets keep on ignoring it. maybe in its wisdom the markets believe that this is "not a new crisis but only a fallout of the earlier one"
slowly my paitence is also getting a bit shaken (well can this mean that the markets have topped out).

sir i am eager to know that is it possible to not have any correction this year and the real "BIG CORRECTION" comes in 2011 which takes us back to 10000 sensex, by which time nearly all of us would have thrown in the towel and would have accepted defeat.
one good thing i have known is that BEAR MARKETS end only when people hate to look at the screen and the markets form big bases, that has not happened till now. so the question is 1) was 2008 a bear market or a correction in a MULTI YEAR BULL MOVE.
2) IF 2008 was a bear market then is this current move a BEAR MARKET RALLY.

please do answer these sir.


raja said...

Dear Sir,
I am regular follower of your suggestion. I want to trade and invest (For Long Term)in RIL, RCOM, L&T & Sujana Tower. Please suggest me the technique.