Yesterday’s effort of closing on the upper end of intraday range bore no fruit. We opened weak inline with global weakness and meandered hopelessly looking for cues. On the dailies we closed below the 20 DMA, which now should give minor resistance. It looks like the H&S pattern is completing but there is one caveat to it; patterns that are easily recognized by the masses tend to fail or would test your patience (you see the pros just wont let you have any free lunch!). Nifty is just frustrating both the bulls and the bears and that is because none seem to have any conviction. This is the classic case of practicing the golden rule when in doubt stay out! (If only it was this easy I myself have been victim of not following this rule :) ).
Speaking of H&S; below is an interesting chart of SBIN (both the weekly as well as daily). Notice how discernable the H&S pattern is in both the time frames. It has formed just above the very strong demand area. It would be interesting to see how this pattern unfolds. I feel we might have nice pull back trade from this demand level and get a chance to short at a little higher level.
"Some people dream of success while others wake up and work hard at it."
Origin Unknown
No comments:
Post a Comment