Thursday, April 4, 2013

Nifty closes below 200 DMA.



4 comments:

chetas said...

For the first time I am seeing NS closed below , all low ema and also ) All TT moving average , day and weekly.

vksoni said...

bb,
As 5600 pe has highest oi closing below this we could see 5500 lavel in next 1-2 sessions.Though it is not a rule.

deepak pinto said...

Sir
Counting down from 6112
A 6112 TO 5663.

Further counts are of corrective nature up.
From 5663 to 5971 it is a zz corrective and is only a shade more than 61.8 of A. Hence could be B as u have said or X. x waves are less than 61.8 or more than 1.618 in price and are less complex in price pattern and time.
By this logic x is preferable to b.
What followed looked like a elongated flat to 5604. The correction of a truncated zz that followed ended at 5754.
However the nature of fall from 5754 is intense
and impulsive
this leaves open 3 possibilities
1. x, followed by a 1-5 impulse starting 5791. The last 2 day move being the 5. In this view the elongated flat and the truncated zz morphs into 3 and 4. And 5 is current wave down.
2. X is Followed by elongated flat abc and zz up is x followed by a down now and b up for a bounce and c down to follow.
3.after the big A down to 5663 the abc irregular flat till 5754 and a fresh corrective or impulsive unfolding

All 3 possibilities show only one direction South
Of these 2nd possibility breaks the least rules and is the most complex to trade with several whipsawing moves.
Also as a adjunct to my last post We did see 5604 before 5971. The hurry shown by the market to do this has surely tilted the scale in favour of bears.

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