Wednesday, June 25, 2014

Nifty's continues to be in a consolidating mode..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

In a trending market, especially for traders who look for immediate gratification, then prices move in the direction of the trend in a substantial manner satisfying the "trendy guy".
In a sideways/ corrective/ consolidating market, the price behaviour is unpredictable as it unfolds in small bouts of ups and downs, frustrating the trendy guy who fails to accept that the trend has paused or attempting a reversal. The TT shows the way; but ego fights it.
FII's are alternating buying with selling in small qty., typical of consolidation.
Prices, in the short term, have closed above two key ST averages.
"Consolidating 2nd wave" seems to be done at 7442, requiring "holding of key retrace points at 7500-18; The ST direction is "biased up" till prices continue to close above DEma & these two key averages (21 or 34 hr smas).
Aggressively Holding above 7553, Conservatively Holding above 7525, rally 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 with many cluster points creating minor channels.