Medium Term Trend: ↑UP (down below 11550)
Failing to Sustain Highs: Nifty once again failed to sustain above 11800 and dropped to 11700 levels. it finally closed at 11722, down 110 points.
Follow up buying has been a major problem for markets in recent times. Yesterday many traders would have gone long above 11800 thinking breakout has come which will take Nifty to 12K+ levels and an overnight 200 point rally in Dow would have fuelled the bullish sentiments further. However Nifty opened in red and within 5 mins of opening, it was trading at 11800 levels. It kept trying whole day to regain 11800 but failed miserably.
False breakouts & wild swings have been occurring far too often. One day Nifty goes up 100 and next day it drops 150. Such a trading environment is a nightmare for a swing trader as there is absolutely no trend whatsoever and it appears as if Nifty is running like a headless chicken. However there is a method in madness. These wild swings are happening for a specific reason and the reason is that Nifty is preparing itself for a big move but before it starts moving it wants to throw out weak traders. Its important that filth is cleared from the market before it starts moving strongly, so in a way these wild swings are healthy (experience traders would understand this completely). We have been warning caution and expecting these swings/chops since last many days and in such situations quick entry/exit is very important as you don't want to be caught on the wrong side.If one is not equipped to make quick decisions and cannot change side from bulls camp to bears camp (or vice versa) in a jiffy, then he should not trade for next few days.
We had mentioned this in detail in yesterdays post:http://niftywaveindia.blogspot.com/2019/06/nifty-outlook-and-trend-for-coming.html
If you haven't seen it yet, then suggest you to go through it.
Right now its difficult to say which way markets are gonna go, but a bullish move is only expected once 11900-950 level is taken out and bearish move is expected below 11550 levels ( a strong move is expected once these levels are taken out).
Happy Trading!
Failing to Sustain Highs: Nifty once again failed to sustain above 11800 and dropped to 11700 levels. it finally closed at 11722, down 110 points.
Follow up buying has been a major problem for markets in recent times. Yesterday many traders would have gone long above 11800 thinking breakout has come which will take Nifty to 12K+ levels and an overnight 200 point rally in Dow would have fuelled the bullish sentiments further. However Nifty opened in red and within 5 mins of opening, it was trading at 11800 levels. It kept trying whole day to regain 11800 but failed miserably.
False breakouts & wild swings have been occurring far too often. One day Nifty goes up 100 and next day it drops 150. Such a trading environment is a nightmare for a swing trader as there is absolutely no trend whatsoever and it appears as if Nifty is running like a headless chicken. However there is a method in madness. These wild swings are happening for a specific reason and the reason is that Nifty is preparing itself for a big move but before it starts moving it wants to throw out weak traders. Its important that filth is cleared from the market before it starts moving strongly, so in a way these wild swings are healthy (experience traders would understand this completely). We have been warning caution and expecting these swings/chops since last many days and in such situations quick entry/exit is very important as you don't want to be caught on the wrong side.If one is not equipped to make quick decisions and cannot change side from bulls camp to bears camp (or vice versa) in a jiffy, then he should not trade for next few days.
We had mentioned this in detail in yesterdays post:http://niftywaveindia.blogspot.com/2019/06/nifty-outlook-and-trend-for-coming.html
If you haven't seen it yet, then suggest you to go through it.
Right now its difficult to say which way markets are gonna go, but a bullish move is only expected once 11900-950 level is taken out and bearish move is expected below 11550 levels ( a strong move is expected once these levels are taken out).
Happy Trading!
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