Tuesday, July 22, 2014
FII's have been buying again for the last 4 days, after 3 days of minor selling- a resumption of 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 & in Day T/f), as long as prices stay above 7622-7637 & 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 7675(2-Hr Low), Conservatively Holding above 7637(DEma), rally continues....
Aggressively Holding below 7714(minor 80%), Conservatively Holding below 7732(80%), correction could continue....
(EW wise, 7459 to 7722 may be considered as a 5 and thus another 5 is possible from either from 7675 or from 7644-59)