Support has risen to today's low-4905 with a gap & intraday supports @ 4935-45.
Ride the trend while part booking along the way. The smaller "X" wave will give way to a larger "X" wave retracement once 4985 is surpassed.
Retracement strategy, a must for traders.
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
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I 'll always be there for you. To make you feel that you're secured. And even if the rain is pouring hard and the sky is almost dark... -
5010-5039 supply zone proved a ST resistance. 5002 proved a break down point. 4945 to 4982 proved a corrective rise, monitored with an ... -
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
4 comments:
Namaste Ilango Sir & Blogmates,
The momentum that we saw on Monday was in full fury today, Bears just ran for cover; Option Analysis for 17-01-2012
Duplicated at Wordpress Site
Thanks & Regards,
Sanjay Kr Jaiswal
reposting earlier observationBEARISH SCENARIO
if the present state is triple zigzag
1st set of A,B,C
A=648 points
B=489 points
C=1001 points
B has retraced 75% of A
C was 154% of A
2nd set ofA,B,C
A=748 points
B=574 points
C=1020 points
B has retraced 76% of A
C was 137% of A
on the whole A=700+/- 50 points
retracement of B was 75% of A or around 500 points
C was more than 100% of A[154%&137%]
if we assume we are in third set of A,B,C
A=680 points
now we are in corrective B
75% of A = 516 points=roughly 5050 as target
once the top of B is confirmed ,one can expect a 1000 point move down
to around 4040
SO papa bear may be sitting at 5000 to 5050 zone
prudent to book profits here
once bitten twice shy
it has already bitten twice at these retracements,will it repeat again
put options /hedged shorts are appealing to me
5020 looks sweetspot for reversal
Trade Plan for 18th Jan.2012
Today, 17th Jan.2012, the market moved above 4910 and reached the high of 4975. The price movement of today market is such, any attempt to label this movement on intra day basis is futile. Hence I re-look in to earlier movement from 4588 to current level.
a = 4588 - 4783 = 195
b = 4783 - 4695 = 88
c(a) = 4695 - 4877 = 182
(b) = 4877 - 4804 = 73
(c) = 4804 - 4976 = 172 .
PRICE COUNT I
The total of c as of today is 4695 - 4976 = 281 Which is 144% of 'a'. Hence the next level of 162% of 'a' works out to be 5011 with tolerance limit of 8 points may be the level of 'c'.
PRICE COUNT II
Also in the above 'c' the sub division (c) is 172 which is near 100% of sub division of (a) and assuming market moves higher from here, the next possible level is 138% of (a) which is 251 points from 4804 and thus 'c' may conclude at 5055.
PRICE COUNT III
Also earlier, I labeled market movement as NeoWave "Diametric" as per the following wave count.
WAVE A = 5700 - 4720 = 980
WAVE B = 4720 - 5382 = 662
WAVE C = 5382 - 4639 = 743
WAVE D = 4639 - 5099 = 460
WAVE E = 5099 - 4588 = 511
WAVE F= 4588 - ???? = ?????? (5048 )
From the above wave count , the present up movement is labeled as Wave F.
The length of Wave F can be maximum of length of Wave D and accordingly
Wave F will have maximum potentiality of 4588 + 460= 5048
CONCLUSION
From the above PRICE COUNT I, II, III, I am of the opinion the present up trend may terminate at any one of the above level and accordingly I may enter for Short position at the level of 5040 with strict Stop Loss Price of 5060.
If market rejects the price level of 5048, it is implied market correction is over @ 4531 level and the present up movement is either Wave 'x' or Wave 'X' and assumed Diametric is invalid. On the contrary if market corrects at the level of 5048 or at lower level the Wave 'G' is opened subject to close below 4800.
Fantastic analysis Jayaraman Sir
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