For the Bulls: The Laxman Rekha is 4450(+/ -)
After initiating my second trade yesterday, my computer kept hanging while Nifty was racing past 4700 and I exited quickly when it gave me an opportunity. While trying to execute the "Short", I faced again quite serious "hanging problem" and was literally fighting with it and finally managed to execute the "Short".And my critic said..."Dheere Dheere Macchal..eh Dil-e-bekaraar"..
I was not only fighting the immediate trend(Up) but even the "Universal forces" that were trying to save me and others who are following me...
Another lesson learnt.
8 comments:
Sir may i know what is the SL "you" are keeping for your shorts.
sir ..if we close above the last weekly close(4710,which we might considering that DOW is past 10k now)can calls be held...
there was a momentum line break in july when nifty went to 3900 and trapped all bears(hns failure)..then that became a 2nd momentum line..now that 2nd line is broken and maybe with a higher low at 4530 this could be another momentum line heading to new highs over next few months...what do you think ...
Hi..MS,
I am keeping a SL of 4950(a whooping 200 points) and exit the shorts in the coming days during a correction if the expected down move does not materialize(Breaking down of the channel).
However, keep a SL above 4853(5 day high). Uncomfortable traders may exit with a 40-60 points loss. You have to make that decision.
I am basing my views on EW possibilities and no system is infallible. I will accept my error of judgement and exit when it says so..Till then I will create more shorts at the levels mentioned in the chart with TA OB, etc..
Hi..Shaq,
There are differences in the technical set up as well as EW positioning then & now.
I have given both the possibilities and you have the resistance and support zones as per the day chart here..Now we need to base our strategies based on this range.
After inflicting so much damage to technical set up in so many stocks, if a new uptrend materialize, it could happen only because of certain heavy weights with out market breadth..This is just an alternative view.
I still stick to the preferred view of "One down move over-One bounce is on-next down move pending".
thanks for the reply sir...lets watch the 4900 zone then...also the US markets ...if this indeed is another bear trap
the disinvestment programme and new tax regime : does this news change the outlook for the market in any way or do you trade only on technicals keeping aside all the fundamentals/ news flow etc.
thanks
minni
Sir,
Is it advisable to buy 4500 put at these levels for positional.
Hi..Minni,
Mostly the trades are based on EW & TA and news & events only facilitate those trades and they do not alter them. And if they do and price pattern takes a major reversal, then the fault is in us in not finding it in the patterns.
News & events deviate the price only for a short term but the other factors would continue to influence the trades that started the trend.
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