Friday, February 3, 2012

TURNING POINTS FOR 03.02.2012


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In yesterday's trading Nifty Future continued its up move and made a new high of 5300 to face trend line resistance as shown on the EOD chart. After the SC judgement on 2G, it showed a sharp correction but only to get back to normalcy thereafter. The EOD candle too shows a doji with long lower shadow which does not suggest weakness yet. However, it is important to note that today's top has faced resistance at the trend line and also an important Fib ratio (not marked on chart).
For today, caution would be the watch word - in view of the important judgement tomorrow and being a Friday it will be important to see at what levels the Nifty Future closes for the week. If you recall, in my earlier post I had mentioned that the current week will be an important one. At least, we have a new top in place and have to see the close today which will indicate if the top will be good for some time to come.
As usual, I would not recommend fresh long positions at higher levels. One can consider going short with stop loss of 5310. On the down side, it will find support at 5200. Fall below 5200 could be sharp, as after a long time, Nifty Future would trade out of the Andrew's Pitchfork shown on the 30 min chart and take Nifty Future quickly to 5100 levels.
Except for the two reasons of topping out mentioned above, Nifty Future does not show any weakness yet, so please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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