Friday, January 30, 2009

Before the Open

Thursday's Nifty refused to move above our resistance at 2875. It closed much lower, inside the 2700 - 2875 trading range.
For Position Traders: If you are short when the Nifty had broken down below 2700, then you should keep a stop losss on a close above 2875. And, wait.
If you are seeking a new position, there are little opportunities inside the range. You should wait for a breakout either side.
For Swing Traders / Day Traders: The Trend is not providing any direction because the Index continues in a range. (If we were in a confirmed up trend, for example, a day trading strategy will be : buy on dips. But that is not so.) Waiting for small intraday consolidations, then going with the breakout may be one way of trading this range.
Have Fun!

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