As expected, last week, NIFTY is forming resistance at 5140-5081 region. The Revised level is now 5170-75, instead of 5181, as per the price action last week. A breach of which, can take NIFTY to 5227. The most critical level for ext week is at 4992, beyond which it can reach up to 4750.
The following observations were made:
- A rounding off in the price action as marked.
- Timing symmetry has just completed.
- In the last 5 trading sessions, Futures made lower closing than the day’s open in three days.
- In the SENSEX weekly chart shown, You can see that, it is too close to the “ “Resistance Cluster” , marked my arrows and Horizontal Support Resistance Lines. Four times, it exhibited inability to pierce (See arrows). When it pierced afterwards, it failed to achieve the technical target and dropped below, after taking a support midway (see Arrow A). Now it is retesting the same level. All these ads to the importance of this level.
Even though, these observations are not “confirmations of reversals”, reducing position size can be thought off, as a precautionary measure, if the trader wished; depending on his/ her risk appetite.
www.ftalarms.com has given hefty gains to the subscribers, in the last run. You may recollect that www.ftalarms.com is an automatic trading signal system. It does not take any assumptions or Global cues and hence the higher success rate
Free Trading Strategy: This time, I would like to give you a free Trading Strategy. LONG 2 Lots of March 5100 Put (currently at 43.7), and SHORT 1 Lot of March 5200 Put ( Currently at 87.6). This has a maximum loss risk of Rs. 4990 and unlimited profit potential if market falls. If market continues to move in a tight range, you will loose, Rs. 150 per day, as an average.
Disclaimer: This Strategy has no relation to the Trading Signals of www.ftalarms.com . The Analyst / Publisher have no responsibility on the outcome of this trade. Traders who take position with this strategy may do it at their own risk.
