Tuesday, June 7, 2011

Trade Plan - June 8, 2011



Another range bound session with Nifty managing to close higher just above the important level of 5555. VWAP @ close is 5548.

1) Levels remain same like yesterday, above 5555, targets can be 5595-5620-5640.
2) Below 5530, 5500-5470 are the support areas.
3) The second chart is the weekly chart with the current week being the 34th week from the highs of November 2010. With Nifty trading above 5555, it could also be probable of the bullish momentum continuing to touch levels of 5610-5760.
4) The 5-EMA has risen to 5537 at close today. The annualized volatility today has fallen below to 20. Heavy weight index stocks like RIL, Infosys look strong for some more upside.  Happy trading!
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3 comments:

  1. r mJune 7, 2011 at 9:25 PM

    Hi Vinod

    How did you get the target of 5757.77 in the weekly charts? Also I am curious to know about the levels of supports and resistance lines drawn on your weekly charts. I have tried to draw them on this chart but failed miserably. :)

    regards.
    rm

    ReplyDelete
  2. VKJune 8, 2011 at 8:35 AM

    Hi RM:

    Thanks for your comment. 5758 is the mean reversion and this could occur either this weekend or next week if 5555 is held. I could be wrong RM, but commiting a few errors is what makes analysis accurate as Nifty too commits same mistakes :). To err is human, to trade is divine!!!

    regards

    Vinod

    ReplyDelete
  3. r mJune 8, 2011 at 8:37 AM

    Thanks Vinod!

    regards.
    rm

    P.S. Here I come google, to study 'mean reversion'. :)

    ReplyDelete

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