Thursday, July 31, 2014
FII's have started to sell, after 9 days of buying- a resumption of 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", as long as prices stay above 7760 & 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 7760(21 Hr Sma), Conservatively Holding above 7743(2 Hr-Low & 61.8% of last rise), uptrend continues....
Aggressively Holding below 7760, correction could resume....
(VIX range for the day is 7735-7835.)