Tuesday, June 24, 2014
FII's are selling for the last 3 days in small qty., typical of consolidation.
Prices, in the short term, have closed below two key ST averages.
"Consolidating 2nd wave" seems to be underway(or done almost at 7410-33) 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 7536, Conservatively Holding below 7562, 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 broke the middle line, reaching the next support zone of 7410-33.(also the day channel support for the day @7412, also WEma)
Keeping below 7543-54, 34 Hrsma & Wk.pivot, prices could head towards 7410-33 zone to complete the correction.
Strength above last cluster res.@7562, also JNSAR & 2-Day High.