When this 50/100 MA crossover comes, the fall is on the cards? But during this crossovers volatility also expected? Think both of your arrows will come... but timing is the question :)
after that we went up till first week of january and after that we corrected .correction was sharper on break of trendline.
now again we r on a new trend line running from march lows. on break of it dnmove can be sharper. normally markets give a pull back apprx upto 100 dma afetr testing 200 dma zone. we have tested 200 dma zone and moving up. mostly we r correcting in a-b-c pattern and we might have completed a and b and next move shd be up as per c which may take us around 5000.after that we may start big down move.small inverse head n shoulder pattern will be formed if we move up from here.neck line will be by connecting recent tops of 4950 and 4930. on crossing same we may see 5000 in coming few days, may be till budget.
nifty tested 5000 as expected and market had seen sell off also from that zone only.more over it was 100 dma zone also. as i had discussed in last reply that there is a tendency to bounce upto 100 dma after testing 200 dma before new big down side starts.we closed around 4922 far away from today's top.
what next ? its very tricky.
i will like to simplify it with 1-2-3 pattern. since we have crossed 4950 which was previous top before bottom of 4675. to day we have crossed the same. we have seen a higher bottom than 4675 which was at 4806 on 19/02/10.so on daily charts we have higher low and higher high pattern with stop loss at 4806.
hold yr long positions with stop loss of 4806.keep raising yr stop loss on higher low formations.
fresh long positions can be created on decisive cross over of 100 dma zone.
It's very nice charts...
ReplyDeleteWhen this 50/100 MA crossover comes, the fall is on the cards? But during this crossovers volatility also expected? Think both of your arrows will come... but timing is the question :)
Thanks and regards
first chart was put on blog on22.12.09
ReplyDeletehttp://pankaj564.blogspot.com/2009/12/trendlines.html
after that we went up till first week of january and after that we corrected .correction was sharper on break of trendline.
now again we r on a new trend line running from march lows. on break of it dnmove can be sharper.
normally markets give a pull back apprx upto 100 dma afetr testing 200 dma zone. we have tested 200 dma zone and moving up. mostly we r correcting in a-b-c pattern and we might have completed a and b and next move shd be up as per c which may take us around 5000.after that we may start big down move.small inverse head n shoulder pattern will be formed if we move up from here.neck line will be by connecting recent tops of 4950 and 4930. on crossing same we may see 5000 in coming few days, may be till budget.
Nifty almost reached 5000 level..:) is it a good idea to short, or nifty may go to 5100 level?
ReplyDeleteThanks and regards
Dear Sujatha,
ReplyDeletenifty tested 5000 as expected and market had seen sell off also from that zone only.more over it was 100 dma zone also. as i had discussed in last reply that there is a tendency to bounce upto 100 dma after testing 200 dma before new big down side starts.we closed around 4922 far away from today's top.
what next ? its very tricky.
i will like to simplify it with 1-2-3 pattern. since we have crossed 4950 which was previous top before bottom of 4675. to day we have crossed the same. we have seen a higher bottom than 4675 which was at 4806 on 19/02/10.so on daily charts we have higher low and higher high pattern with stop loss at 4806.
hold yr long positions with stop loss of 4806.keep raising yr stop loss on higher low formations.
fresh long positions can be created on decisive cross over of 100 dma zone.