NIFTY : 6009
Hi,
Readers,
The Nifty has
done exactly as was mentioned in my previous blog on July 07, 2013 when the
Nifty was at 5867. It gave moves on both sides within the range as was
mentioned in my earlier blogs.
Nifty broke the range upside and went up quickly. Nifty movement is very volatile and it has made around
10 gaps in last 22 trading days. Targets of this breakout are 6040 and 6136.
But the movement of Nifty in this breakout is suspicious and cautioning, care
should be taken here. Because Nifty has made a rare hanging man pattern on Friday with gap
which is a bearish pattern.
Note, hanging man pattern is
common but hanging man pattern with gap is rare which was made on Friday.
Important point here is that movement after breakout should be strong and
should not make hanging man pattern.
Now how to
trade, Since, breakout is there,
traders should have been long and enjoying the gains. Never trade against the
trend even if movement is cautioning you to be suspicious. What you can do then
is, to keep your stop losses tight and control on the quantity. Trailing Stop loss
for those who are riding the move should be around 5900 levels. Keep booking profits regularly
while riding this trend.
Nifty’s volatile movement these days is due to news flowing from within the
country and from rest of the world. Keep watch on national and international
news.
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