Total Pageviews

Friday, October 5, 2012

Nifty : Short term top

I had added shorts yesterday and averaged today . I was going to post yesterday but did not get time. As indicated in the last post i was waiting for the CCI(34) to come close to the +100 line from the top . Well its almost there but the reason I added shorts yesterday was because looking at a couple of other things , I think the short term top is in.

Look at CCI(14) . Its showing divergence . CCI(14) divergence gives a good trade most of the time. But also look at DMI. The yellow part of the graph is at extreme levels... Also the green part of the graph is behaving like in september 2010 at which a correction was seen. Also its channeling but more than the channel , its the wedge formation and wedges have been acting very good in Nifty .

The DEFTY has also got divergence but RSI is majorly overbought reason. and also major trend line resistance.

TheVIX is giving higher lows and hammer like candles and getting support.

As of now i had squared off the PUTs at lower level 34 period Bollinger Band at 5732 in NF from were it bounced back . I hope we touch 34 hour mid BB level or the 34 hour SMA at 5792 at which poiny I go short again.

Some weeks back I posted a 1 minute chart showing "Shape of things to come" . I had deleted the post but I think we are doing exactly the same graph as seen in that 1 minute chart.

See the region between the 2 red horizontal lines. I think this correction in October month will be the same . Looking at the above above 1 minute chart I think we should hit 5525  like below the first down wave as shown by the arrow.....lets see.

Have fun.

No comments:

Post a Comment