Wednesday, February 3, 2010

February 4, 2010, Nifty

Nifty staged a smart recovery today and we were vindicated in sticking to our long as per pure technicals. With the Nifty and all three individual stocks we cover, all showing reversal signals, the Nifty could be quite volatile. We will stay long.
Trading Strategy: Stay long, move stop loss to 4814.
Supports: 4807-14, 4766, 4539
Resistances: 4945, 5133

4 comments:

VK said...

won't such high volatility throw technical analysis haywire?

Nifty technicals said...

Not necessarily. High volatility usually affects moving average based indicators like MACD, Bollinger bands, etc., but retracement levels and others are still quite valid.

Nifty technicals said...
This comment has been removed by the author.
VK said...

you should have sticked to staying short as you indicated yourself.. that was a really good call.. i am impressed.