May 12, 2014

Intraday analysis

Breakout above initial trading range was bullish. First buy was above 6990F and second buy above 7005 / 7020 F.

There is a slightly different strategy at work here. While the initial breakout showed signs of failure, there was no reversal for a very long time and on the contrary, markets started moving up. When this happens, chances are high the uptrend will resume.

If you see this from the perspective of someone who is short around 7000 levels, you can sense the person will start getting panicky as nifty crosses 7005F. Sometimes a view like this helps.

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