Wednesday, July 23, 2014
FII's have been buying again for the last 5 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"(Remaining OverBought in Hour T/f for long suggests of bullish undercurrents), as long as prices stay above 7718 & 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 7721(2-Hr Low), Conservatively Holding above 7680(DEma), uptrend continues....
Aggressively Holding below 7718(3 Hour Low), Conservatively Holding below 7674(last pivot low), correction could resume....
(EW wise, 7459 to 7722 , a 5 done and another 5 unfolded from 7674 to 7756 and yet another 5 is unfolding from 7718, always holding around a retrace of either 38% or 50%)