Nifty Update for December 3 - Manoj Bhagra

The daily chart below closed with what one would call a hammer, if you are a follower of the oriental charts. What’s more important is that it jabbed the lower line of the triangle and now is sitting on the edge. I guess the bear just got bigger or is it just a false break to the down side? The 20-period MA is at approx 2810 level and upper trend line resistance is at our much tested and held 2860/70. Supports? There are none; only illusions of supports (anyway they don’t even hold like the resistances are doing). At the risk of being repetitive I am once again quoting a saying that there are no resistances in a bull market and no supports in a bear market.


Coming to the hourly chart, we can see that the triangle (drawn in dashed red and blue lines) is wasted. The price is right at the apex, with both the 20 and 50 periods MA’s nesting at 2700/2710. This might prove a resistance for tomorrow.

ll in all a bit confused state of things, if you are good at intraday scalping you are in the game, but if you are the positional types, its better to wait for clear signals to emerge. The broader levels discussed earlier on the weekend post still hold ground. How about practicin patience? Three important P’s to trading are: Patience, patience and a whole lot of PATIENCE!




"You cannot escape the responsibility of tomorrow by evading it today."

Abraham Lincoln