Tuesday, December 21, 2010

Nifty at 6000

With an uptrend supporting it, the Nifty has managed to touch 6000. Rapid gains in previous rallies have overshadowed the slow gains reached in the current up move. Yet, the up move has seen the Nifty rally from a low of 5721 to a high of 6007.45 today in seven trading days, giving a gain of 285 points, which is five percent. That's good going.

The Market is in an uptrend. This analysis has been repeated by me, morning and afternoon on the ET Now channel. Therefore, if you are not yet watching it, you should.

There is a simple rule of trends - Trends are assumed to continue until proved otherwise. We therefore should go with the up move until reversal signs begin to come in. That has not happened so far. Instead, today's move to 6000 has seen the Nifty break out of a small trading range.

1 comment:

alphabet1 said...

How do you estimate advent of reversal ? What tools - Mclellan, fast rsi, candlesticks, etc. etc.

Please carry forward this write up explaining how to catch the reversal set up in time, not too late.

I know this is a tall order, and I understand even you can go wrong, but still more important is the process you adopt, for us to imitate.

Thank You