The Investment Points:
It can be observed from this weekly chart that in the bear markets of 2011 and 2015, the Index formed bottoms near 200 . Those yellow circled marked on the chart proved to be excellent buying/investment opportunities. If I have to load my money for greatest investments, it will be at the same point.
Nifty Took Support yeah...
Nifty took support from the 9950-10500 zone mentioned in my previous post. It bounced sharply for a gain of 600 points and still rallying.
The resistance points:
The first one is 10710. If crossed, we will see more short covering.
The second one would be a wider zone from 10900 to 11100 (200 points).
If market is to correct, these are the two halting points where we may look for selling opportunities.
Complacency for traders
The 10710 level would be very important for next week or so.
On a positive note, bears would not be happy above 10710. Also fresh buying may come above this point. If bulls prove to be stronger above 10710, the second specified above will be quite achievable. And that will be a 200 to 300 points gain.
Secondly, On (see update section) you may see a nice W-Pattern in the making, which signals a medium term bottom formation.
As we are moving higher very swiftly, it is possible that we may see some profit taking.
The strategy next week:
If we start to pullback before touching 10710, I ll be looking for bear traps to go long.
If we cross 10710 (gaps up scenarios) without any sign of weakness, I ll be looking for buying opportunities.
If we touch 10710 and show weakness, I ll be looking for shorting opportunities for quick gains.
Do hit like
All the best
Like any other business, trading is all about taking chances as there is no perfect strategy to make a successful trade. It is just that we have to take trades at points or areas where the probability of success is higher.
Whether one is a positional or a day trader, the key lies in patience -- patience to wait for high probability opportunities -- the opportunities which can never offer guarantee for a successful trade. As I said we have to take chances as there is no profit without risk.
All the best for this short week and HAPPY DIWALI TO ALL OF YOU.
Trade safe, stay healthy.
You may go through some basic bullish/bearish candlestick patterns.