Nifty: Why Nifty is Stuck in a moment & strategy to trade
Nifty
CMP 10863
- one of the reasons can be explained with the help of EMAs
- when ever there is a wide gap between 50 day EMA & 200 day EMA it can be said that markets are in a trending market
- with the expansion of gap trend gets stronger & vice versa
- Since November 2018 there is hardly any gap between 50 day EMA & 200 day EMA & the result is Nifty is doing a yo-yo trade in a 450 point range not giving any sense of direction...
Strategy
- look to sell close to channel top or buy close to channel bottom...
- exit trade if Nifty moves out of yellow channel & reverse the trade if it sustains beyond the yellow channel for 3 consecutive days
Take care & safe trading...!!!
CMP 10863
- one of the reasons can be explained with the help of EMAs
- when ever there is a wide gap between 50 day EMA & 200 day EMA it can be said that markets are in a trending market
- with the expansion of gap trend gets stronger & vice versa
- Since November 2018 there is hardly any gap between 50 day EMA & 200 day EMA & the result is Nifty is doing a yo-yo trade in a 450 point range not giving any sense of direction...
Strategy
- look to sell close to channel top or buy close to channel bottom...
- exit trade if Nifty moves out of yellow channel & reverse the trade if it sustains beyond the yellow channel for 3 consecutive days
Take care & safe trading...!!!
Comment:
Nifty
Cmp 11422
A stupendous 400 point rally in just a week's time... Channel breakout trade rewards handsomely...
Strategy
Consider booking profits as per risk apetite for time being.
Time to short is still not right. The thesis being channel breakout has happened after a long 4-5 months and it may not fizzle out in 4-5days.
Also there is further scope of another 200 points on the upside even from current levels.
Rather look for buying opportunities if there are any dips towards 11260-11280 zone or REVIEW to sell if nifty sees resistance around 11600-11650 odd levels
Till then
Enjoy ur weekend... :-)
Happy trading....!!!
Cmp 11422
A stupendous 400 point rally in just a week's time... Channel breakout trade rewards handsomely...
Strategy
Consider booking profits as per risk apetite for time being.
Time to short is still not right. The thesis being channel breakout has happened after a long 4-5 months and it may not fizzle out in 4-5days.
Also there is further scope of another 200 points on the upside even from current levels.
Rather look for buying opportunities if there are any dips towards 11260-11280 zone or REVIEW to sell if nifty sees resistance around 11600-11650 odd levels
Till then
Enjoy ur weekend... :-)
Happy trading....!!!
What more on a day (Friday) when most of the world market were down 2% our market managed to successfully hold on to stay above the yellow channel for 3 consecutive days.
And Today is the 4th day and The result is in front of you. Any surprises with a 130 point rally???
Go ahead hit the play button on the chart and see it for yourself...
Charts do have a way to give us cues. Are you listening....???
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Take care & safe trading...!!!