Nifty Recap For The Day !!!

Let’s see what Nifty did today. With no positive cues from anywhere, and Asia providing the fuel for downfall, well that’s what we did, we Fell! I took this short trade but just could muster about 40 points in my short. What really got my goat today ,was the price action in the encircled area. First we had a bearish flag (I shorted this one and was stopped out on break even) and then we developed into a small H&S pattern. This one too I traded, again no moolah ! Now looking back, I see why this pattern ( a bearish flag accompanied by H&S) did not produce the desired results as was expected out of it.

• These patterns were forming at the bottom. Therefore there is less likelihood of them, producing any substantial down move.
• Second this entire circled action was happening when the Stochastics was already in OS zone and RSI also wasn’t exactly signaling major bearish sentiment.
• Third, MACD was tracing a bullish divergence.

The final signal to go long came, when price broke out of its MA and sloping Trend line(no I did not take this trade, with 2 failed trades already in my kitty I was bit low on confidence). I am personally not able to trade these intraday gyrations, as keeping the Stop Losses is a major challenge (somebody smarter than us is gunning for them on both sides). So if you are like, one of those characters on TV called Quick Gun Murugan types, Happy Shooting! As for me, I prefer my Gun for Fun !!!!