Thursday, October 9, 2008

MONTHLY SUPPORTS RESISTANCES.

The Monthly Nifty Charts show the downward sloping channel..the touch down was app.3290-3300 , markets moved fast furiuos yesterday towards it , but stopped short at 3329.45..,turned and covered ground fast despite continuos selling & kept recovering till the close.The speed lines show the 3rd final supports around 3100 area..(i have 3140-3150 as a value of nifty for final support )below which could be a free fall..last we tested this support line was MAY'04...If this bottom holds , we can expect a bounce to 4100 area as per speed lines and any turn of trend can take us to top of the channel which today is .. 4300 area ..

The Monthly Stochastics & RSI are fast nearing the oversold territory( from January'08 tops) but still pointing downwards due to relentless selling of last 1 week. As and when they turn , the market can look upwards..for a while , will the relief rally come , surely why not as everything is grossly overdone..MILLION DOLLAR QUESTION IS WHEN..??????The best thing we can do here is start to look for signs like, higher bottoms /higher tops...& see that the bottoms made are not breached .Do keep in mind that the last one weeks fall put in a huge STRUCTURAL DAMAGE TO ALL STOCK/FINANCIAL MARKETS OF THE WORLD. And recovery will be a bit slow and over time..Hope this helps all friends visiting here.. cheers..

PS: Monthly charts are used for finding future footprints from the past for longterm.

HAPPY DUSSEHRA DAY

I would like to wish all friends visiting my blog on this auspicious day, with a sincere hope that the coming days /weeks brings a end to this senseless selling/carnage and world financial order stabalises too. I would like to thank all the visitors to the blog , specially the people who have been sending me mails/yahoo msgs , for their encouragement and kind words. Since I started this blog, I have been trying to build this place as a learning site for newbies and oldbies for technicals , using my knowledge and expertise of reading and interpreting charts.Please appreciate that my complete time is paid by my clients & my expertise / trading skills is primarily for them so technicals is what you get here , will try to do more for intraday also if time permits..I feel it is better for people to learn technicals themselves and trade according to their risk appetite..not long back a group of people got together to learn technicals from me..almost all take their own calls except one or two who still chase experts all the time ..and wait for calls..WHAT A WASTE..do keep sending me ur suggestions for what more in techs . can be done.& .Enjoy the day...cheers.