A Bull today, a Bear tomorrow when does it ends a traders Sorrow! A bad attempt at poetry I guess, but then this is what’s happening. It’s all boiling down to now a day on how Uncle Dow behaves overnight. We have just not gone anywhere; sitting pretty good inside a narrow range, Nifty seem to be testing the conviction of both the Bulls and the Bears! Time to stay out and once again if you’re the fastest finger first types, trigger happy guy, just grab some pennies intraday (though is not easy as it sounds!).
Nifty seem to be holding out near the confluence of the 20 and 50 periods MA’s on the daily chart as shown below. The inverse H&S which many of see can be an Illusion, at least the odds favor it, nevertheless with patterns one needs to only take a view when you have a convincing breakout; in this case 2880! A break above this can give another 70 points to begin with.
The hourly chart shows that Nifty is facing some tough resistance at the 200 periods MA. An important level of activity (shaded in blue) is concentrated between 2770 and 2780. A break below 2750 can test 2710 for starters!
Many of us, including me, rely on a lot technical indicators for our analysis, here’s a nice article on how to go about using them judiciously, read it all here.
"To be successful, you must decide exactly what you want to accomplish; then resolve to pay the price to get it." Bunker Hunt
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