Sunday, 6 October 2013

Dated :- 06.10.2013 (SUNDAY)

                                                            NIFTY    5907.3
Hi,
Readers,


Nifty did exactly the same as was mentioned in my last blog on October 03, 2013 wherein it was mentioned that Nifty on October 4, 2013 (Friday) will trade with bearish bias and it was mentioned to trade with –ve bias only for intraday for October 04, 2013. Nifty gave two bouts of downward movement on down side of 60 points each. Traders who would have Shorted Nifty any time in the day would have earned profits.

It was also mentioned to close the position at the end of the day.

I hope readers would have enjoyed Profits.

Now What :-

Nifty had given bullish breakout of bearish head & Shoulder pattern. Means, bearish head & Shoulder pattern was made on hourly charts and Nifty has proved that bearish breakdown as false and rose above that.

Although we have spotted the same and mentioned in my blog on September 30, 2013 that rebound is coming & the result is in front of you. We captured both the down and up moves in Nifty.

Now Nifty is even on the verge of breaking out bullish Inverted Head & Shoulder pattern on hourly charts above 5955.

This combination (Failed bearish H&S pattern and making bullish H&S pattern) is interesting. (H&S is Head & Shoulder)

Nifty on its immediate charts is positive. Which says that money shall be made on long side BUT BUT… pattern support to Nifty will be available only if it sustains above 5955.

Banking Stocks have started making some patterns that are looking interesting on positive side.  
But they will move only if Nifty moves or vice – versa.

BUT… do keep one eye on strong news flow from within the country and especially from US which is threatening to be bad and adverse and is capable of forcing the Nifty to go down.

Trade accordingly.


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