Friday, February 4, 2011

Trade Plan - February 7, 2011


Nifty closes the week on a negative note once again after touching a new high of the week today when it touched 5556 level but intra day cracking below 5-DEMA level of 5506 level took Nifty to new lows of the week as well as new low in over 6 months of 5369.  VWAP @ close is 5467. Nifty closes near the lows of the day @ 5396.

1) Highly range bound week and the support of 5400 broken today on weekend. Lower levels of support of Nifty will be 5345-5310-5275 levels.
2) Next week might be another week of consolidation around 5300-5350 levels on downside.  The chart captures the action of the past 5 days on the 90-minute chart and all trades either side of 5465 have been profitable. Nifty is bearish with newer lows consecutively over the past five weeks. Happy weekend! Happy trading! 

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