Monday, June 23, 2014
FII's are buying interspersed with a day or two of selling during this month, typical of consolidation.
Prices, in the short term, have closed below two key ST averages.
"Consolidating 2nd wave" seems to be underway within a broad channel, as long as prices stay above the cluster zone of 7322-44;
The ST direction is "Sideways" till prices continue to close between DHEma & DLEma and continue to close below these two key averages (21 or 34 hr smas).
Aggressively Holding below 7554, Conservatively Holding below 7580, 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.
Note how prices are consolidating in a broader channel and remaining in the "upper zone", having positive bias. Once they break this middle line, the bias would turn negative.(It broke down & closed below it yesterday)
Momentum would return above this channel.
Consolidation continuing for "investors" for the next big upmove as long as "7300" is protected.
7548-7554, pivot, averags & 7577 are two key resistances now
7477-84 & 7445 are two key supports today.