Trading the Market: Methods in Madness

Sunday, February 21, 2010

State of Nifty - 19 February 2010

I guess it is a matter of debate whether the intermediate trend is down or not and also whether it is time to buy for long term now.

Focusing on Nifty, it seems that as it has fallen below the 20d EMA low, 20d EMA high will provide resistance. Therefore , safe trade is to sell on bounce up as long as the 20 d EMA high is is not breached on a daily closing basis. The picture will change if and when it closes above this resistance which is located around 4930-4950 now.

In other words, on a daily (or 5 days) 5 min chart, look for the Slow Stochasitc to go up to the overbought zone and go short as it comes out of the overbought state. The natural stop loss will be the last swing high. If the trade goes wrong, wait patiently until the market shows her hand. Never fight with the market.

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

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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

Update on - Trading Opportunity - Intermediate Term- Amtek Auto

Amtek Auto hit the SL 170 on a daily closing basison Jan 27.


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The price action since then tends to indicate that there is support at 160. However, there is also a declining trend line which must be overcome. For the time being best to avoid it and consider going long on a weekly close above 200d especially if supported by strong volume. Here is the latest daily chart.











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

Like this post? You can receive it free by subscribing. Just click on this link


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