slowing in 3-5 sequence that means there is a divergence setting up -prices have made rocket move but indicator did not even cross its previous high that is Negative Divergence-shown by blue line on .
Divergence is not a timing tool so piece of advice do not use it often-it is just another tool for confirmation to keep you on track-6 steps you go into a black hole.
So we will be searching for selling opportunity starting this week & middle of Feb2017- as per earlier updates -Jan-Feb2017- be careful
We will wait for some pressure from market & in the bounce we will decide to trade the market on the downside. Connecting clues from DAX- What a move from 11575-11900 zones-3rd over moving into 4th which will take atleast a week & sideways action before they run into the final leg upside- they align with us- 345- Be careful.
Dax & Nifty- The last bulls capsule
Happy Jan Series
Super 17828-did you use it
Happy Republic day- Up- Up & Away -possible final leg from 18700-18800
Closing Price@19585 as on 30th Jan2017
Some pressure was seen from the top -we will wait for the bounce in the zone 19700-19730.
Risky trade- once Bn sustains or holds above 19600 can look for a push into the zone 19700-19730 & putting a stop above 19795 -once it starts falling back below 19700 for a sell trade
Safe Trade- we will wait for the bounce to 19700-19730 zone & would be interested to take sell once it starts falling below the lows of 30th Jan2015.
Sorry for big typing mistake- Above its stated 30th Jan2015 ---instead of 30th Jan2017
BN did not move above 19600 for risky buy call to be active.
Made a recent low@19445- if bounces close to 19550-19575 & starts falling back below 19550 then putting stops above 19600 we will look to sell for targets 19350-19375- & once it starts going below 19500 then trail your stops to entry price of selling to manage your risk component.
Entered the zone of 19550-19575 as stated above-we will watch carefully now.
Sitting 19500 -Turns from the zone 19550-19575 - recent High 19567. Kindly manage your risk component if sustains below 19500 -it likely travels to 19350-19375 zone
If 19440-19450 zone is not taken out, then likely there is a support which is coming or it should pierce 19435 for 19325-19350 zone -I have shifted little down as price is spending some time here in 19450-19500 zone.
If zone 19440-19450 holds, then one can look for profits & allow Bn to bounce back again to 19550-19575 zone -we will wait & once again if it starts falling below 19525 then we will take sell positions with recent high as stops.
Recent Bounce Price@19623
Awesome - It jumps exactly from 19435 -day's low as expected, BN did not pierce 19435 as stated above- Bang On!
Its not sustaining below 19525 so we won't take sell positions here & wait for bounce close to 19650-19685 zone- if we get then we will think of selling again.
Today we are selling on bounces
Similar move is happening in Nifty as well it is bouncing from day low so any move below 8555-8570 & sustains down, then putting stops above 8620 -likely Nifty sell positions could be taken.
Recap - Selling from 19550-19575 to 19350-19375 later modified to book profits between 19440-19450 zone & suggested that it could dip further only if 19435 is pierced.
Wow!- 19435 was the low for the day & BN bounced sharply to 19625 - It is tricky to come up with exact levels but was correct to pick the U-turn from 19435.
Never jump in a running Train -I always keep telling -if you want to go long let it retrace some bit possibly if it comes in the 19690-19720 zone -if holds, then look to buy for 150-200 point target with recent low as stops once it starts above 19750.
Be careful on top@20130-20150 Range - Divergence is strong & can turn abruptly or suddenly giving jerk to bulls - Kindly do your analysis & cross check -fall can take to 19950.
Wow! -I am excited that it turned from the zone 20146 & before closing made a low@20003 & closed@20070.
Let us see how it moves tomorrow.
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ