Friday, August 22, 2014

Nifty is getting resisted at "Broadening Top" with yet another "pause"..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

Nifty has paused around the 7900 for two days on the back of overbought hour technicals. That is resistances established in the short term.-Yesterday, it got resisted around 7911(7920).
Now, we need to look out for possible supports. Prices, though breached the 21 hr sma, managed to close above "it" on the back of "avergaing".
Another reliable support is around the 34 hr sma +/-5pts.(34hrsma at 2.00PM when Nifty made a low of 7856 was 7851 which is 7851+5)
Another way of looking for support is whether DHEma less 20 or 30 points hold(It held in the region of DHEma less 20 or 30 which was 7881-20-30=7861-7851) but this must get completed in the opening session and buying interest should return in the second half, failing which there will be a likely "Sell on rises" signal emerging.(The low was made at 1.02PM and buying interest did emerge in the second half)
On the other hand, if the 1st session makes highs near resistances or new high, there could be "roll over" pressure....(1st session moved into resistances and roll over pressure was seen bringing the price down by 60+ points)
Once you start to see 3,4, (3), (4)'s, it is trading time..(Trading time - resistances to supports and supports towards resistances)
And this is called "only Ullu banoing..ullu banaoing.." 
I have labelled yesterday's low of 7856 as "iv" tentatively, it could be 4 too. It depends on prices holding 7882 or 7872.
EW helps us to trail a position;
EW tells us if more price advances are likely;
EW is synonymous with channels and the channels help us to capture bulk of the prices.
There are no perfections in the market; Use your imagination to fit in the imperfections of the market into such anticipated perfections.
Above all, flow...& let your mind be like a mirror to reflect the price behaviour in the most objective way.
(This hour expanding triangle/ broadening top reminds us of the one in the Day T/F)