SP 500 achieves the target and is very close to its support level of 1373. Near term relief and bounce back should be seen if it hits 1373.
Weekly Update-
Nifty- Benchmark indices corrected and traded in a narrow band this week. 5650 was achieved as posted in last week's update. Now, where are we heading from here? Looking at the global setup, we are lagging behind in correction along with other Asian indices and a catch up should be underway soon. This correction should test the lower end of the channel around 5450-5500 before some relief rally comes into play. 5750 becomes the pivot and 5800 becomes a crucial level to watch for now on the upside. After some grinding, a decisive move should be seen in the coming week. Trade cautiously with strict stoplosses.
SP 500- Few weeks back, I had put out my update on US markets and rightly claimed that the correction was not over for the indices. Finally we have seen some decisive moves last week. Now if we do not get back above the lower channel in the next 2-3 sessions, the index will be on its way to test 1380-1400 pretty quickly. Looking at the damages seen in tech heavy Nasdaq after an extended rally, we are in for some decent correction with respect to other indices as well. Relief rally cannot be entirely ruled out in the coming week.
P.S: I am on travel and hence have limited access to internet. Until my next weekly update, have a wonderful trading week ahead!
Nifty- Benchmark indices corrected and traded in a narrow band this week. 5650 was achieved as posted in last week's update. Now, where are we heading from here? Looking at the global setup, we are lagging behind in correction along with other Asian indices and a catch up should be underway soon. This correction should test the lower end of the channel around 5450-5500 before some relief rally comes into play. 5750 becomes the pivot and 5800 becomes a crucial level to watch for now on the upside. After some grinding, a decisive move should be seen in the coming week. Trade cautiously with strict stoplosses.
SP 500- Few weeks back, I had put out my update on US markets and rightly claimed that the correction was not over for the indices. Finally we have seen some decisive moves last week. Now if we do not get back above the lower channel in the next 2-3 sessions, the index will be on its way to test 1380-1400 pretty quickly. Looking at the damages seen in tech heavy Nasdaq after an extended rally, we are in for some decent correction with respect to other indices as well. Relief rally cannot be entirely ruled out in the coming week.
P.S: I am on travel and hence have limited access to internet. Until my next weekly update, have a wonderful trading week ahead!
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Looks like nifty is not yet ready to quit! Tenken has moved to 5699. Yesterday, nifty bounced back from daily kijun, which means there is a strong support there.
So we now have to concentrate on the weekly ichimoku step (5754). If nifty closes above the step, we must exit. With only one day next week for Diwali, 5900 becomes a near possibility if the step is broken.
Strategy will now be:
So long as the step holds, we stay short.
Forgot to add one more point, LHLL has started yesterday. If yesterday's low is not taken out or yesterday's high is taken out, this rule becomes invalid.
So we now have to concentrate on the weekly ichimoku step (5754). If nifty closes above the step, we must exit. With only one day next week for Diwali, 5900 becomes a near possibility if the step is broken.
Strategy will now be:
- If nifty crosses 5754, exit.
- Keep a stop loss sell at 5730.
- Though weekly is overbought, daily looks normal, so we can reverse the trade once 5760 is crossed for target of double top, 5815 and if there is volume, target 5900. Reason: Diwali
So long as the step holds, we stay short.
Forgot to add one more point, LHLL has started yesterday. If yesterday's low is not taken out or yesterday's high is taken out, this rule becomes invalid.
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The longer we stay below Wednesday's high of 5777, the possibility of testing 5650-5660 is rising. I was looking at a dip this week, which we got but the same was extremely shallow. 5650-5670 should be a good entry point to ride this final leg of the rally. If 5777 is taken out, we should see a good upthrust targeting the levels mentioned in my weekly update.
Sorry for being away! I was busy reviving my old thread (Check my signature)! Also, nifty was going down as per TA. So I felt it better to wait, till the TA gives a reverse indicator before posting something. 
Gap Filling:
In 30-min chart, there was a gap up opening between 5648 and 5685 in the first week of November. I was waiting for the gap to get filled before I could give any view on nifty. But nifty made a low of 5665.75. So I assume today or on Thursday it could make a low of 5650 before deciding the next trend, down or up (Global factors to support)!
315 Trend Change
In Daily, at the moment, it is at the threshold of 315 strategy. 3ema is near 15 ema and on verge of a crossover below 15 ema indicating bearish trend. If this happens, the first target is 5600, which is the previous low in daily, and indicates a short term double bottom. Looking at RSI, it seems that this support will hold.
Ichimoku Daily
Also as per ichimoku, the top of cloud is 5622. Rule of ichimoku is if the price enters the cloud, there is high probability of the price touching the cloud bottom, 5487. So if nifty is to bounce back, it has to from somewhere near 5622. Another indicator in ichimoku is chikou span. This has crossed below the price action indicating bearishness.
Ichimoku Weekly
Tenken sen and 15 ema now stands at 5573. Kijun is still flat indicating that the price has to touch tenken. Last time tenken was touched was on 3rd September 2012. Also weekly RSI is still overbought.
Support
However, if a support line was to be drawn from all the previous bottoms in daily, then nifty could touch 5574. This should be a very strong support. This also coincides with the support line drawn from the previous two bottoms in weekly.
I tried reading the above details and figure out what to expect. And what I got is. So just keep the levels in hand and whenever nifty touches any one of the levels, check the charts and decide when to go long.:thumb:
Gap Filling:
In 30-min chart, there was a gap up opening between 5648 and 5685 in the first week of November. I was waiting for the gap to get filled before I could give any view on nifty. But nifty made a low of 5665.75. So I assume today or on Thursday it could make a low of 5650 before deciding the next trend, down or up (Global factors to support)!
315 Trend Change
In Daily, at the moment, it is at the threshold of 315 strategy. 3ema is near 15 ema and on verge of a crossover below 15 ema indicating bearish trend. If this happens, the first target is 5600, which is the previous low in daily, and indicates a short term double bottom. Looking at RSI, it seems that this support will hold.
Ichimoku Daily
Also as per ichimoku, the top of cloud is 5622. Rule of ichimoku is if the price enters the cloud, there is high probability of the price touching the cloud bottom, 5487. So if nifty is to bounce back, it has to from somewhere near 5622. Another indicator in ichimoku is chikou span. This has crossed below the price action indicating bearishness.
Ichimoku Weekly
Tenken sen and 15 ema now stands at 5573. Kijun is still flat indicating that the price has to touch tenken. Last time tenken was touched was on 3rd September 2012. Also weekly RSI is still overbought.
Support
However, if a support line was to be drawn from all the previous bottoms in daily, then nifty could touch 5574. This should be a very strong support. This also coincides with the support line drawn from the previous two bottoms in weekly.
I tried reading the above details and figure out what to expect. And what I got is
. So just keep the levels in hand and whenever nifty touches any one of the levels, check the charts and decide when to go long.:thumb:Similar threads
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