2. Today's candle mentioned above is a
doji star, not just doji. Hence, Friday's candle will show trend for next week.
3. AS PER 9.30 STRATEGY, SELL ABOVE 5223NF
TARGET 5202/5188 SL 5253.
4. A likely inverted flag should give our
target unless killed above 5232NF.
5. Nifty is in a Descending Triangle today
and I hoping for a break out next week, preferably with a gap up open on Monday.
6. As stated in the first post, nifty
opened gap down, made lower high and lower low than yesterday and closed -ve.
It also underwent consolidation, as was expected, and also hints at a probable
accumulation, which, however, can only be confirmed by a break out next week.
The 9.30 strategy, which indicated a downtrend, failed to give its target by
just 4 points. Today's candle neither negated bearishness indicated by
yesterday's doji star nor the last three candles can be considered to have
formed an evening star. This is because last three candles are actually at the
bottom of a downtrend and also today’s volume is lesser than that on Wednesday.
Hence, Monday’s and next week's trend is not necessarily bearish. A Descending
Triangle formed today also gives hope of a breakout since it has formed at the
end of a downtrend and nifty is at an important support level. Nifty did
attempt a breakout near close. My gut feeling is that we will see a big move on
the upside next week.
The
intraday chart of nifty spot values with 5 min candles is shown below.
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