November 9, 2016

Master candle on NIFTY

Today we had what I like to call a "master candle". This is a candlestick which is large in size or has a tall body and the very formation tells you a lot of what has happened.

In any master candle, the high and lows are extremely important... in the current context, the low is very important as we had a severe gap down and a very strong rally afterwards.


It is normal for markets to consolidate or do timepass within the high/ lows defined by the master candle. These are sometimes easy to trade - sometimes not. Let us see how markets pan out this time as the volatility caused by this candle has to fizzle out over a period of time.

In our current context, we also have to note that 8500 broke decisively and while this level offered very good support in the past it will now offer resistance.

2 comments:

  1. Now 8500 upside breakout is noticed. Shall we expect bullishness hereafter?

    ReplyDelete
    Replies
    1. No... expect a lot of resistances.

      Best trade right now is intraday.

      Delete