A YOYO .............

Whew ...........what a day ! A gap down opening and what a recovery, thanks to some short covering and bottom fishing. Well the opening was right at the point I had metioned yesterday arnd 3800 levels ...... tested the 3790 prior low and bounced back ..... and once it crossed 3900 and sensex crossed its high and open which were the same,it zoomed . The last few gap down openings have been like a yoyo, so that's something to ponder about, as it indicates the strength or the buying that's visible at lower levels. Now again another important session lies ahead tomorrow, the question now is that can we bring down the City of Troy i.e. 4100 levels and close above it. If that happens, I won't be surprised to see 4300-4400 levels before this series expire.

Well all depends on global cues, as Inflation figures doesn't paint any clearer picture. The positive from today is the way the markets recovered today, but that brings up another question. Can the momentum be maintained and will there be follow up buying ? What it seems that If once the 4100 levels are breached, expect more short covering. The indicators are indicating upside momentum, but they sometimes lag. Lets see how the market plays it, and let the market itself decide its own direction.

Happy trading and cheers,

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Where's the money shifting ????

In a world where equity markets have gone for a toss and global economy is weakening rapidly day by day, where's all the money going ????? Cash is king, agreed .... but what would be safest haven in these critical times ? The answer is my friend, GOLD. And the evidence is in front of us ..... Gold jumped 80 dollars in a day .... the most in a decade. One more intresting fact is that when the bear sterns crisis occured, gold touched a high of $990.

Technically speaking a bounce back in gold was expected from $730-$740 range. A resistance was expected at around $780 which did happen but once that resistance was breached it flew like a jetplane. Now I know many of you like me must have missed the rally, as I was waiting for some decent dip to create a long position in gold. And I would not advise you to enter at these levels. So what to do now?? Short it ? I woud'nt suggest that. The major resistance now gold faces is at $880-$892 range. $892 being the 200 dma. What I would suggest is that wait for a correction to happen and use the buy in dips strategy for gold. Major supports are at $840-$845 levels and further down at $780-$790 levels. And more the global economy weakens, more the gold prices will soar.

Check this website http://www.netdania.com/ for streaming Gold (spot) and Silver (spot) prices, and very good charts and tools for TA.

Happy trading and cheers

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4099 .... The new Great Wall of China !!!

17/9/08
04:30 pm

Well .... Everyone was expecting a positive opening on flat to positive global cues, but it happened third day in row ....... Nifty futures did'nt have the courage to cross 4099. It kept on whipsawing wih pivot point, that was 4041 ...... but finally the bears jumped out of the window dragging it down. The only positive was that neither spot or future did not convincigly break the first pivot point support that were 3966 and 3983 respectively. Another important day lies ahead, if any weak glodal cues occur tomorrow then we can test the 3920-3930(spot) levels again. If those levels don't hold, we might test the prior lows of 3790 (spot). For any upside momentum nifty futures need to cross and close above 4099.



Happy trading and cheers


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