November 21, 2014

Weekend update

Markets close at new high confirming that trend is still up with support at 8300.

On a different note, advance declines is not supporting higher moves past few days... we are seeing a lot of selling in stocks even as markets continue to move up. This creates the justifiable feeling that while markets are going up, my stocks are not going up.

In fact there are hardly any good buy calls in past 2-3 days.

Swing low support is at 7700. Resistance is expected around 8450-8500.

Sustaining above 8500 will have bullish implications with rally possible to 8900.

Option writing points to support at 8300 and resistance at 8500.

Refer charts for more commentary.

EOD charts: 


Weekly charts: trend is up with swing low at 7700. For a trend reversal, look for faster retracement of rally starting from 7700.


Intraday charts analysis

On 5 min charts, we had a buy signal on first box formation (breakout, large bar)... trailing SL got shifted to 8450 spot; this never got triggered during the day.

Ironically, on one of the easiest trading days like this, I hardly made any money in nifty. I went long around 11am (I was on call for 30-40 min before that) and then got stopped out on trailing SL in options around 1pm. The SL is not hit on spot or futures chart.



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