Dated :- 23.02.2014 (SUNDAY)

                                                       NIFTY  Spot :   6155.45

Hi,

Readers,

Nifty did exactly the same as was mentioned in my previous blog.

It was clearly mentioned that Nifty will try to fill the gap in the charts at 6188 to 6260 levels.

It was also mentioned that trade is coming and try to trail the trade with some quantity.

Importance of 6120 level was also explained in my previous blog.

I hope readers would have enjoyed the profits.

Now what :-

Remember even till now the overall trend of Nifty is down.

Readers would have been holding part long and enjoying the profits.

See, I have also explained many times earlier that once you identify a trade & enter in that trade, it is a crime if the ultimate outcome is loss. If somebody ultimately books loss in that trade than this market is not for that person.

Nifty may try to fill the gap of 6188 to 6260. May or may not succeed.

Nifty has major resistance at 6200 – 6230 levels.

It is recommended to book profits on Monday and step aside.

Booking profits never hurts.

Why to book profits. Because overall trend is still down. And now Nifty is approaching the area where trend will be questioned. And if trend persists (which is expected) than correction will be very pain full.

Till the time trend is not reversed trend is down, it is simple technical analysis.

Even though, there is good bullish Head & Shoulder pattern in the making on hourly charts. Breakout of which is above 6165. But it is only professional traders who understand the technicals can play it. Because targets of this bullish head & shoulder pattern is good one and will even question the trend. But trend till the time not reversed it is down.

Better safe than sorry.

Since I write the blog at the end of the day. Any sudden & reverse movement during the day would be very pain full. Because head & shoulder patterns whenever they fail the movement is very sharp.

That is why it is recommended to book profits and step aside.

For those who understand the technicals and are professional traders who want to ride the bullish head & shoulder pattern. Stop loss for the trailing long position is 6086 as of now. And gradually increase it further.

Expiry is also on Feb. 26, 2014. And it is a truncated week.

Volatility will be there or Nifty will be very dull.

Book profits and step aside and wait for next move to come.

Till then enjoy the profits.