Nifty has closed at its lowest level on weekly basis since the Jan 22nd fall....This is not a very healthy sign....Currently the weekly close is placed on the long term support line (See weekly chart)......The last week also saw an engulfing bearish candlestick formation on the weekly charts...Such a pattern is very bearish if it occurs after a uprun....But if it occurs on a down run, it might indicate the reversal pettern on charts which has to be confirmed by the higher close on the next week's charts........
Currently I am not focusing on the daily charts because so many ifs and buts can arise at this point of time........But on weekly basis, if we stay above 4000 levels can move upwards......The fifth downwave is on its way now.......If panic settles in due to any reason, Nifty has tremondous chances of finding a triple bottom and find a base out here......But if there is no panic, then we are likely to continue in the down trend and move towards 3600 or 3200........If 3600 comes, then the Fibonacci traders will go long there since that is the 61.8% retracement level........Until n unless, we close above 4450 on weekly basis, recovery is ruled out......
My advice to all traders under the difficult circumstances will be to play in options.......Carrying naked shorts in futures will be equally risky like carrying naked longs (which should not be done)........Trade on odd counters and trade against market sentiments (this means trade the counters which others are rejecting and have comparetively small ownerships)........
No comments:
Post a Comment