Monday, June 2, 2014

Nifty, oversold with +ve div in ST, bounced off DLEma..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

Prices, in the short term, continue to close below all key averages.
"Flat Correction" is unfolding; the direction is now "biased down" in the ST till prices continue to close below these key averages.
However, there are positive divergences in the hour t/f and prices, in the last hour moved out of a small downtrending channel since 7344.
Holding above 7225, ST bounce would continue towards 7280-95.
Holding below 7318, downtrend would resume....(7317, week pivot)
The strategy that has worked consistently well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL". Adapt to it. 
On Friday too such trade point emerged at open, the last fall (from 7295 to 7225) was retraced to 61.8% at 7268(7272) and market fell and reached DLEma less 30 points at 7216(7211).
Last fall may be treated as from "7272", aggressively and "7344", conservatively.