Thursday, July 24, 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 7753 & 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 7772-78(50%-61.8% of last rise), Conservatively Holding above 7719(DEma/ Dev.34Hr Sma), uptrend continues....
Aggressively Holding below 7827(HL4), Conservatively Holding below 7842(R2), correction could resume....
(EW wise, initial retrace of either 38% or 50% gave way to 61.8% retrace, early signs of selling pressure emerging - sub-waves leave little room to speculate; look for the channel support to decide decisively, also 34 Hr Sma...)