Friday, June 6, 2014

Nifty, having broken out of the consolidating channel @ 7425, making huge gains in uncharted zone.

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).
Also, prices have broken past the channel resistance around 7425.
Holding above 7408, uptrend continues....
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. 
7377-84 & 7408-16 are two key supports today.
Flowing with the market: Since Nifty reached the channel top " 7433", correction/ reversal was expected as per the pattern/ EW forms and this led us to keep two options in mind and to be vigilant; accordingly, when prices fell from 7415 to 7361(DEma), we kept the retrace ready as well as looked for the "abc" sub-waves. "a" did a 21 points to 6382 and "b" fell to 6367.65 and we anticipated "c" to complete around 6389 and reverse but it did not show weakness; hence, we alerted "sustaining 6389 is strength" and Nifty moved near 100 points on conquering 21 hrsma, a critical average.
Describing a market "too high" is an opinion; and describing a strongly trending market as "overbought" using indicators that serves well in a sideways market is like "using a wrong tool".
Market does not care about our opinions; our tools; it has a mind of its own.
Only following and "following with an objective mind" would keep you in the right track.
"No truck", "No excitement" will sustain your success in this journey.