What may come and what may we see....

My article on 2nd of May stated "Sell in May and Go Away"....and I had presented all the reasons for saying so....And when everything was falling into place, there came a 1-day knock of Nifty on 10th May when it retraced exactly 61% of the fall till then....And came shouts and slogans from the audience....Some remarked "I went to Goa after selling my portfolio at 5000. What to do? while some remarked that may be I could have saved my readers if only I listened to him and bla bla...."

But then market is no one's property...Its a dynamic system which obeys no one's command....

Anyways......let see what happened......

First the false break out takes place on 13th May. Its crosses the resistance line (marked in red) but hits the 34ema line and closes on a Doji pattern....

Consequences: People forced into fresh long positions (trying to average loses) and a deep red bar formed the very next day....

Reasons: People wanted to believe what they hoped. A complete sense of denial of the fact the the broader market was weak...

and now what can possibly happen from here on.....

I had already presented my views about what could possibly happen....but still I will write what I feel at this point of time.....

4820-4830, being the lower end of the parallel channel will defintely act as a support zone...Further, on the 30min chart, the wave completes at around 4820-4780 zone. If that zone holds or Nifty recovers and closes above that zone after initially breaching the level, a bounceback til 5050-5080 is quite possible. This is in confirmation the wave patterns and the diagonals drawn.....Obviously thats a possibility on the 30 min chart....

The broader trend still remains negative and as one see the charts posted above, the ultimate target could well be arounf 4400 zone....So that means the bounce, if comes, is going to be a short lived one but a sharp 1-2 days type of rally....

Advice:

Try your luck at bidding for dream figures....Try to buy what you desire to buy....Put buying bids at dream prices which may be 20% - 30% below market prices....

Happy trading and keep reading for the next article.....