Thursday, June 5, 2014

Nifty breaks out of the consolidating channel @ 7425.

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(21 or 34 hr smas).
However, there is a channel resistance around 7446, approx. (80%)
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.
7339-42 & 7374-87 are two key supports today.