Tuesday, March 06, 2007

nifty 50:50, trend up or down?? either way 3900-3840 gap down area resistance

Two possibilities for markets right now
bearish wave A down and pullback commencing right now
target 3760-3820-3840-3900 then down much lower till 3440-3330-3220-2900
second more bullish one
c wave of flat ended at 3556
no more new lows
higher to 4440-5550 or so for 5th wave
now even if this 5th of 5th comes
it won't be a straight line 3900 is 50:50 area and will definitely give very very solid resistance
and we certainly won't be going up alone, global markets will need to break out upwards as well

Keep in mind on monthly chartts were are still in w3, w4&w5 left
but a w4 on monthly charts could go as low as may parallel channel
how strong are your long positions?
how long can you hold them?
that determins how u trade
max support comes from 2600/3774*4240 = 2921
thats also nifty value area 13.3x-15x earnings
thats where u should just buy nifty and hold+ hedge by shorting other stocks as needed.

My theory remains that this bull market will top out closer to sensex 20k, nifty 5500-6000
I'm thinking 3556-3900-3400 then 4440++
but lets see, one step at a time, just follow the market
Need help in following??
Use this: http://niftytraders.blogspot.com

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