Friday, July 18, 2014
FII's have started to buy again, after 3 days of minor selling- a consolidation within the major uptrend. Prices, in the short term, have closed above the two key ST averages. (As long as prices close above these, technicals remain strong; only a close/sustaining below it would reverse the ST trend)
The ST direction is "biased UP"(But OverBought in Hour T/f but not in Day T/f), as long as prices stay above 7594-7609 & 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 7625(3-Hr Low), Conservatively Holding above 7572-88(Wk.Pivot/ DEma), rally continues....
Aggressively Holding below 7661(61.8%), Conservatively Holding below 7697(Wk.R1), correction could resume....
(Not making the (v)th would make the rise from 7422 as a 3 wave "abc" structure resulting in weakness)