Friday, December 2, 2011

Trade Plan - December 5, 2011


The bulls on the rampage and Nifty closes near the highest point of the day @ 5050 and most of the shorts getting ejected out. VWAP @ close is 5022. A very strong closing to the week and this week is special in the sense that it completes 13 months from the high of 6338 and today's chart is the 13-month Nifty analysis using Fibonacci levels/projections.

1) Reversal level for Monday will be 5000 levels of Nifty  spot and Nifty will remain bullish above 5025 levels as it is trading above  all short term EMAs now. Next targets for longs will be 5085-5110-5135.
2) The current bullish momentum ahead of the Christmas festival season could take Nifty to as high as 5285-5320+ levels and global cues are bullish for this rally.
3) Below 5000, long positions are not safe and Nifty could  likely slide fast to 4935-4870 levels, as fast as it rose to these levels.
4) The chart of the past 13-months shows the important levels of Nifty highlighted and the bearish scenario in case global cues weaken and should the dreaded 3rd wave down of EW unfold over next four to five months.  Have a great weekend :) Happy trading :)

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