Wednesday, June 11, 2008

Nifty Future - Intraday - Will a Short Deliver a Few Points?

Intraday conditions for a short have been built. We see that Nifty future has not been able to penetrate the morning's top, and has hovered around here for a bit. The question to ask is are we in a 3-minute w4 and hence at close we would break up to complete a five wave pattern. So, will a short here deliver a few points for an intraday trader.

We see the -DI (Red) has crossed over the +DI (Green), but the ADX (Blue) is still not strong enough to assure us that the trend is going to be a strong one. Perhaps waiting and watching this for another 6-9 minutes would help.

The RSI has started to move down; RSI is a leading indicator and a directional move on the RSI is usually followed by the price. All of this gets negated if Nifty future breaks upward and an intraday w5 starts. However, below 4475 - Nifty future is a clear shorter's dream.

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