Friday, July 4, 2014

Nifty, breaking 7707 for intraday correction, kept above 7658 & continued back into its trending way...

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

FII's have been buying big(last 4 days) after the consolidation with in the major uptrend.
Prices, in the short term, have been closing above two key ST averages.
"Consolidation"completed in a bull flag, prices broke out & have paused & the next upmove started with another gap-up & sustaining;
The ST direction is "biased UP", as long as prices stay above 7690-7707 & close above these two key averages (21 or 34 hr smas).
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.
Aggressively Holding above 7707(3-Hr low), Conservatively Holding above 7658(DEma), uptrend continues....
(iii)rd wave has started from 7623 within which another sub-wave started from 7690.
Any kind of 3rd wave should be followed with patience and following its sub-waves could mislead.
And this could be mitigated with inputs from other studies such as TA/ TT/ OI.