October 18, 2010

Broadening pattern gives support

CHART-II
  • Nifty futures trading above 6091 will be positive for the index.
  • If sustains above this level NF should move to the top of the range or to the top of the broadening pattern.
CHART-I
  • The support line of the broadening pattern gives support.
  • But things will favour bulls only if it trades above 6091. I am expecting NF to get resisted around 6091 levels and test the support area of 5939 - 5961 during this week.
  • A sharp recovery is possible only if NF trades above 6091 with good volumes.

3 comments:

  1. Dear Sir,
    after seeing post +152,target 6402,i bought nifty at 6316(minifty-2lots) & holding the same.shall i hold till expiry or exit,if so at what price?

    ReplyDelete
  2. @dhiksuchi
    If Nifty futures breaks 6000 again then it may take sometime for NF to come back above 6200.

    ReplyDelete
  3. @dhiksuchi
    For a breakout trade always keep the breakout point as stop loss. or Keep a support or resistance level just below the breakout point.

    One more suggestion I posted that chart because of the breakout. If the breakout is not valid we should not be in that trade. You will get a better entry later. You will also save your capital.

    ReplyDelete

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