A close above 3365 is the min. requirement to arrest the downtrend. 2-Day swing reversal is above 3415.
Lower highs and lower lows are continuing.
There is minor positive divergences in the "5-Minute" charts.
There is no secular downtrend and stock specific buying & selling continues with some stocks hitting new highs of this uptrend with good volumes.
Till the weekly trend turns down(Below 3150), look out for some buying opportunities in "corrected stocks" in the coming days.
4 comments:
HI Ilango,
In your table you have given high/low ema, is it a sell at high ema and buy at low ema? Also if you have got a good set up would appreciate it if you put it on the blog. Congratulations on the blog.
Thanks,
Sudhin
hi,
could you please tell in 5 min chart which indicator do you use that is showing positive divergence ,also you said"There is no secular downtrend" what do you meant by that.
Thanks
Hi Sudhin,
I use these emas to judge the position & strength of Nifty.
I stay long as long as Nifty trades above 5 ema.
Trading below high ema indicates loss of momentum in uptrend. It is early warning sign but use it with other TA indicators such as macd, stochastics.
Trading below low ema means downtrend is on.
You will notice that Nifty has managed to stay above this low ema during this corrective period. Similarly since last Thursday, Nifty has closed below the daily high ema and it was sold off on every intra rises but only to close below that.
These emas positioning indicates to me the internal strength & at times the struggle between the Bulls and Bears.
I combine EW, TA and these Tech table to guide me through Nifty moves and they have been quite helpful along with the Pivot table.
I can send you the excel file if you are interested so that you can monitor it yourself. But it is a manual job.
Set up: Simply follow Nifty with the help of channels, moving above 5 DMA , etc and divergences and a directional indicator of reliability-macd.
And thank you for your appreciation.
Best regards.
Hi Renu,
I use 12, 26 periods with 9 sma for 5 minute chart and it shows minor positive divergence.
Secular downtrend: One in which almost all the stocks participate in the downmoves barring the defensive stocks. However, I have been noticing individual stocks are making new highs of this uptrend during this Nifty's corrective since 3510 top.
Acc, IDFC, GMR Infra, Wipro made highs with good volumes today. Most of the stocks that fell in the last 5 days have been having decreasing volumes with lowest volume today.(Maruti being an exception-sold off with volumes). So a decisive move should start tomorrow hopefully.
My observations are based on 75 stocks that I follow and it may not be conclusive. However, I monitor the frontline, high volume stocks.
Best regards.
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