Friday, November 11, 2011

CNXIT–A Look at charts

Rushabh Shastri said...
its out of this subject But somehow IT index dont look encouraging at current time, bulls need some more confirmation it looks targeting below 6000 cnx it.

My Notes:

The CNX-IT Index had a strong up move. There are signs that this up move may be coming to an end. I am giving the chart for CNX-IT with my notes on the chart. The Notes are explained in detail, here.

CNXIT-NOV9-11

 

1. A pattern of lower highs is possible given weakness in the markets. The fIrst high was at A. After a correction at B, prices have moved up to C, which remains below A. If prices remain below the high of C, then we will see a pattern of lower highs. Once price goes below B, the lower lows pattern will also kick in. Remember, this has not happened yet.

2. A short term sell signal came in when the short term moving average (dotted line) moved below the intermediate average. That signal continues, so short term traders should look to sell on rallies.

3. the TA-Insync, an advanced momentum indicator has broken down from a 6 week support area suggesting weakness.

Traders Summary: The short term trend is down. The intermediate trend remains up but has the possibility of breaking down. Aggressive traders should follow the short term trend managing their volumes and risk. Conservative traders can wait for the charts and the indicators to give the same signal – both should be bearish or bullish.

3 comments:

Rushabh Shastri said...

thax for your comments

santosh said...

Hello sukhani sir..Good evening..

I am santosh from bangalore, 21, .you are truly model expert for others when it comes to ground to earth kind of interactions and kind advisories..I am following your blogs since two years and learnt many things from your blogs and ideas you have shared..

I trade heavily in options and rarely in cash..I am engineering student now and i am interested in TA, so learning it all the time along with my engineering studies..
.now i have some serious dilemma and confusions in trading, i mean selection and implementing the trade that i choose, maybe holding it and booking it at the right price..my questions are as follows..

1.which are the tools and important indicators (must indicators) you use for trading nifty and any other stock...

2.while selecting options in nifty or particular stock how does OI play important role in selecting the right strike price option...also what are the things that one should look into particular strike before buying that strike option of stock..

3.how to select or shortlist stocks for day trading and also for short term trading, say for week..

4.please do share your and best adapted methods for trading nifty in intraday, i mean strategies..

All these questions are interlinked to many questions that are running in my mind now, hope your answers will satisfy all the confusion by unlocking these 4 dilemmas..missing your presence on TV..be back soon..keep blogging..we just love it..

rajiv malik said...

santosh has raised some very interesting and valid questions on options trading. hope sukhani ji deals with them as soon as possible for the benefit of one and all.