Window of Opportunity in Positional Trading in Nifty - Part II

In the last post we asked the question, if Nifty were to drop down from here, what would be the target?

Lets look at the weekly chart for possible answers. Again the 20 day WMA waves are superimposed ( the blue and the red lines).

One operating hypothesis we can make is the weekly wave will not be breached. In other words, notice that the WMA (High,20) red line is at 3874 and still rising. Notice also that the blue line is at 3591. So, we will ASSUME for the time being that Nifty will not breach these. And this gives us a target between 3874 and 3591.

In fact, we can rephrase the analysis to state that those who are waiting to enter the market ( having missed the bus in late March ) can now plan to watch and observe Nifty around these two levels.

Also, the Slow Stochastic has not come out of the overbought zone yet. Presumably, this means we have a few days to catch the down trend.

Please note that we are making an educated forecasting here. We have to keep watching the price action and validate our analysis forecast. If market action roughly supports the analysis then well and good - if price action is completely different we must be prepared to abandon or modify our approach - Market is supreme, not our analysis.


If you have any comments please write to me at stockmarket.methods.in.madness@gmail.com

Disclaimer: The above analysis is just that - my analysis. If you choose to trade on the basis of this analysis, you will be solely responsible for the outcome of the trade - profit or loss. Please keep in mind that trading and in particular day trading is not for the novice and there is significant risk of loss of capital in trading.