Interesting Nifty is giving frantic moves in June too. So in the last post 4300 lvl was being eyed by me and we did retraced to a low of 4332!!. Downfall was imminent but such a fury was a rare moment of delight specially if you are prepared for shorting.
Now Nifty has duped many with such moves earlier too. So continuing this Retracement or Reversal thread further(btw a retracement is a profit booking percentage before moving further up and reversal is all you know i.e discontinuation of previous trend say for long or intermediate term.).
Sooo here we go. Today of 18th June watching market would going to be very interesting. I'm not jumping into any conclusions (anyway why I need to). A pull back is well expected and pullback got to be in order 4390 - 4410 - 4450. 4460 Being the maximum pullback and current falling should resume if we go in ideal step by step breaking down.
Now I know things never go as expected falling is clearly on the cards so traders can pull market further down which can be a possible scenario so 4300 is last resort and if taken out we can well se 4230 as a place to stop and reverse.
Bullish Scenario: I'm not ruling out my 20% retracement rule which constantly proved to be best buy since this rally started just check out past charts for the performance of this rule. Bulls may take sub 4300 lvls to use buy on dips and we can see a fabulous pullback. Remember Dow is too at its crucial support of 8500. Now Dow did managed to breakout 8500 lvls and managed to stay just on boundry line last night. So we are on the verge of breaking out or resuming to uptrend (50-50 chances for both).
Anyways logic says that we must pull back above 4400 and see how market reacts further as last hopes of bulls i.e budget will keep bulls busy as I said in last post and who know bulls will be waiting in the bushes to attack bears anytime......
Hope you loved reading it.
Happy Trading.
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