One of the methods technical analysts use is looking at CLUSTERS to find resistances-supports.Looking at the above chart you will find a good cluster being formed in the zone of 3950-4000 and a little deeper at 3900.. There are 7 levels of nifty in this zone..,which have been derived from making extensions/retracements from various levels nifty has travelled in last 2-3 months. Normally at these levels markets try to take support and change course.. As these are exceptional times a break here can take it back to test the lows or lower..Lets wait for a day or so for some confirmation, too much news is there in the pipeline and one can just get whipsawed viciously..trade cautiuosly for the next day or so...cheers
Monday, September 29, 2008
NIFTY CLUSTER
One of the methods technical analysts use is looking at CLUSTERS to find resistances-supports.Looking at the above chart you will find a good cluster being formed in the zone of 3950-4000 and a little deeper at 3900.. There are 7 levels of nifty in this zone..,which have been derived from making extensions/retracements from various levels nifty has travelled in last 2-3 months. Normally at these levels markets try to take support and change course.. As these are exceptional times a break here can take it back to test the lows or lower..Lets wait for a day or so for some confirmation, too much news is there in the pipeline and one can just get whipsawed viciously..trade cautiuosly for the next day or so...cheers
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