Wednesday, September 1, 2010

Support Levels actually provide support

For the Nifty, we have seen a strong bounce from 5350 support. Yesterday, while the Nifty was in a free fall, around 5350 - the decline stopped. This is the level which has provided support many times earlier. It worked this time also. Classical technical analysis provides us with a framework to make trading decisions. Some decisions will go wrong since the market has its own mind. But, there exists a strong probbaility to make money using classical TA.

While a lot of focus seems to be on the Nifty which isa ctually a choppy market, the big moves are coming in metals - Gold and Silver both of which are at lifetime highs. All time highs are bullish. There will come a time when these highs will become a bubble, but we cannot say when that scenario will emerge. So for now, both metals are buy on dips.

5 comments:

deepamresearch said...

yes sir i am agree with you i hope if it retrace to 18400 from its resistance 19200 it will bi buying opportunity or breakout from 19200 as american would have been investing in gold as they have no option rather than gold

rajv malik said...

namaskar sukhani ji,

you have been saying that the nifty is in downtrend. what do you have to say on its bouncing back again and again in the past few weeks ?

regards

bkm said...

Respected Sudarshanji,
Strange, the whole globe seems to be flying due to ""A rally on Wall Street accelerated Wednesday morning after a report showing an unexpected rise in U.S. manufacturing activity added to earlier optimism over China's strong manufacturing report. "" -- CNNMOney.com.
Why was China showed no reaction and in fact dropped to -ve zone.

BKMM

rajv malik said...

sudarshan ji,

i want to attend your training course but i am in pitampura, new delhi. it is not practical for me to come to nehru place for it. why cannot this course be offered online or through video so that we can all save travelling time. to attend a two hour session one may have to travel four hours.

warm regards

Murali said...

Hi
I am new to this blog. I listen with lot of respect for your guidance in CNBC. I am in Hyderabad and keen to attend your trainings. Is there a possibility of conducting through video / webinars?
Meanwhile is there any quick start materials available to use the technicals. I am using Metastock 9.1 v with realtime stock quotes and full time trading in futures with very small investment.
Rgds
Murali