Wednesday, June 4, 2014

Nifty pausing near the consolidating channel top..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

Prices, in the short term, have closed above all key averages.
"Flat Correction" seems to be completed; the direction is now "biased UP" in the ST till prices continue to close above these key averages.
However, there is a channel resistance around 7446, approx. (80%)
Holding above 7325, day pivot, at the open, ST bounce continued towards 7408-28, pre-mkt's resistances. Holding below 7450, correction could resume....
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 Tuesday too such trade point emerged in the 02nd session, the last rise (from 7342 to 7425) was retraced to 61.8% at 7374 and market rose by 45 points to 7420.
Key averages are far below which could result in a grinding session if held below 7450.
7339-42 & 7374-87 are two key supports today.