After a reversal day recorded on Monday, October 27, a greater than 3% gain was recorded today (November 10). Does this provide the much needed confirmation for the start of a bull phase ?
Today's gain came with lower than average volume. This does not provide the neccessary confirmation. The gains should have come in with higher than average volume. In fact, a similar pattern was developing in the USA, and gains did not have volume confirmation.
The intermediate trend remains up. This is the trend that traders should be following. We should never anticipate turning points against momentum. This means, when the markets are moving up, we do not decide where the up trend will stop. We let the market tell us when it wants to reverse.
A bullish pattern seems to be developing in the Nifty. This is an inverted head and shoulder which has bullish implications.A close above 3240 will confirm this pattern. A similar pattern was under development when the Nifty was in the 4200 - 4500 range, but confirmation did not come in and the pattern was eventually cancelled. If this pattern foes get confirmed, the targets may be 4000+. Now, once again, we let the market do the talking & the thinking.
My point is: while momentum favors the bulls, go with long positions. Avoid going short. When short term trend turns down, then exit long positions.
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- Answers to comments oct31-11
- Process of Consolidation Likely
- Nifty Pattern Targets Reached
- Happy Diwali
- Stock Selection (based upon their historical volat...
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- Niftnear ORB Trade
- A dip in an ongoing up trend
- TATA Motors Life Cycle
- Hindalco touches support
- Mystery of the missing trailing stop
- Nifty Live Oct 12-11
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- Aiming for a better trade
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- NR 7 in Nifty Weekly Chart
- trading with a gap open
- Silver Pushes against Resistance
- An unusual continuation pattern in the Nifty
- Sudden Rally
- Nifty at 4750
- There is a time to be old and a time to be bold
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- Higher High - Higher Low pattern in CNX IT
- Bear market shows its strength
► September (53)
- The Bear Story
- Nifty in a well defined range
- Morning View Sept 29
- Nifty Options Trade
- Nifty on way to close higher for this F&O settleme...
- Learning Ideas
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- Something Better
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- Weekend Reading, Nov 30.
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- Hard Work is the easiest way to success
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- This Bear Market may last longer than we imagine
- Is there a rally ?
- Traders enjoy the process of trading
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- What should Investors do now ?
- Nifty returns for a 'Test' of earlier lows
- The trend remains down
- A Matter of Trust
- Udayan in Amritsar
- Early Morning Review - Friday 14 Nov
- It is not about earnings downgrades
- Abrupt End to Uptrend
- Has the Bull Market Started ?
- The 2 PM Review
- So much volatility, Market resembles a Casino
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