When the going gets good the smart book profits! Well this is what happened today. The rally yesterday gave impressive returns to the patient few who had used the earlier dip to buy into strong scrips and it warranted to take the money off the table at least a part of it (The Gambler by Kenny Rogers...gives one such advice..Enjoy!). Like I had mentioned on my post on Sunday that rally was in the making considering the oversold nature of the charts (of course the backdoor maneuvers of the various governments also helped), and voila we had ourselves a beautiful long green candle yesterday.
Speaking of today, the daily chart below shows a shooting star, signifying that many a trader wanted to book the instant profits that were a god sent opportunity in these troubled times, cant really blame them, for the way we have been gapping up and down crazily, its wiser to take in as much as you can. We are still way below the falling 20 period MA at 3880, a logical target for this up move to say the least. Talking of supports there is none other than protecting yesterday’s low, which also happens to be the channel support!
Moving on to the hourly chart, we can see that the price met with severe resistance at the falling 50 periods MA (the blue line) and has closed near the 20 periods (the green line). The support on the hourly charts is at 3400 and 3325, whereas any move up needs to surpass 3600 and 3650 to get the bulls back into any kind of reckoning!
"Nothing great was ever achieved without enthusiasm."
Ralph Waldo Emerson
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