Tuesday, June 17, 2014

Nifty's pause extends gains into a reversal mode, needing a follow thru'...

Nifty Intraday Update-III


Nifty Intraday Update-II


Nifty Intraday Update-I


Nifty Pre-Market View.

FII's have sold in small quantity.
And prices, in the short term, have closed below two key ST averages.
"Impulsive 3rd wave" seems to be underway with minor corrections, the current one being "ii"nd sub-wave as long as prices stay above the cluster zone of 7361-7433;
The ST direction is "Down" till prices continue to close below these two key averages (21 or 34 hr smas). Aggressively Holding below 7563, Conservatively Holding below 7605, correction 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.
 7485-7498, the gap area & 7448 are two key supports
and
7554-63 & 7580 are two key resistances today.
A classic display of resistances turning supports unfolding in the hour chart below; accordingly, if 7490 breaks, the reliable next support could be around 7450.