NIFTY continues to be bearish. Now that, NIFTY has moved down from line “2” and is getting close to the danger mark, which is line “3”. This point is approximately at 5270. If line “3” is breached, then NIFTY can move to line “4”, which is approximately at 4700. The expected time frame for touching Line “4” now stands at 27 Jun 2011.
On the other hand, if line “2” is breached upwards, then we should be heading towards life time high, whose chances, at the moment is remote.
Note: Never ever average down on your stock, unless, you are capable of doing so, “till the end of the fall”. But, if you have to stop averaging midway through the fall, your loss will multiply, beyond your imagination. I will, some time, mathematically convince you, why you should not do so.
