Nifty Weekly Review
Right at the start of the week, on 14th Nov 2011, our head line read "Fresh, clear & sustainable Sell signal emerges". And what a week we had after that. During the week, the Nifty lost 263 points. The high of the week 5229 and the low 4838 had a range of about 590 points between them, showing how accurate our reading of the technical charts was. During the week, we also had suggested that "the Nifty would Gap down and Stay down" and also that "the Sell on rally would continue". The Nifty responded well, and we were able to book sizable profits during the entire week.
We still believe, that the Bearish stranglehold will tighten on the Nifty. But we are prepared to let the Bulls have a short run before the Bears takeover again.
In the above weekly chart, the technicals are clearly stacked against the Bulls. The volume in the latest large fall has increased. The MACD is in the positive and reducing. The ADX has just generated a fresh sustainable sell signal. The Bollinger Bands indicate that the next support is around 4610 and also the EMAs are stacked up against the Bulls.
Although, considering that there is expiry of the current series during the week, there can be a small Bull run due to short covering, we believe that the majority of shorts have got covered. During the next week, and for that matter, for some more weeks to come, we will have our bias towards the bears, till the charts suggest otherwise.
We are, at present, happy with our performance, and believe strongly, that , there is no need to overstretch one's limits to book handsome profits in this market on a regular basis. The need of the hour is patience with agility. Sounds like a oxymoron? Well, so are the markets.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Right at the start of the week, on 14th Nov 2011, our head line read "Fresh, clear & sustainable Sell signal emerges". And what a week we had after that. During the week, the Nifty lost 263 points. The high of the week 5229 and the low 4838 had a range of about 590 points between them, showing how accurate our reading of the technical charts was. During the week, we also had suggested that "the Nifty would Gap down and Stay down" and also that "the Sell on rally would continue". The Nifty responded well, and we were able to book sizable profits during the entire week.
We still believe, that the Bearish stranglehold will tighten on the Nifty. But we are prepared to let the Bulls have a short run before the Bears takeover again.
In the above weekly chart, the technicals are clearly stacked against the Bulls. The volume in the latest large fall has increased. The MACD is in the positive and reducing. The ADX has just generated a fresh sustainable sell signal. The Bollinger Bands indicate that the next support is around 4610 and also the EMAs are stacked up against the Bulls.
Although, considering that there is expiry of the current series during the week, there can be a small Bull run due to short covering, we believe that the majority of shorts have got covered. During the next week, and for that matter, for some more weeks to come, we will have our bias towards the bears, till the charts suggest otherwise.
We are, at present, happy with our performance, and believe strongly, that , there is no need to overstretch one's limits to book handsome profits in this market on a regular basis. The need of the hour is patience with agility. Sounds like a oxymoron? Well, so are the markets.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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