CONFUSION -- SHORT TERM TRADERS NOT SURE ABOUT DIRECTION

On 16 march view predicted was -- " Since yesterday short term trend has been changed to down, one can sell NIFTY at C.M.P. (current market price ) - 5421 for target of 5300 and may be 5200 in coming 4-5 trading sessions." ( See link - http://kolhapuritrader.blogspot.in/2012/03/nifty-short-term-view.html ). RESULT : - On next trading day ( 19 march) nifty achieved target of 5300, and today made low of 5233.8.

Now what is next possibility ?

NIFTY HOURLY 

As seen in above hourly chart nifty is trading in narrow range  since last 2 days.

 

NIFTY DAILY 

As seen above chart during previous fall on 7 march 200 EMA given support to nifty, and since last 2 days nifty is getting supported by 50 EMA, will these 2 supports  hold or got broken during this week? Nobody knows the answer, we will follow the technicals so that we will be on right side.
    One more thing we can notice in daily chart is that -- today nifty opened at 5261.3, made high of 5297.15, low of 5233.8 so movement of approx. 64 points, but closed at 5270.3. Thus it made DOJI which once again signifies confusion among short term traders about further direction.
    So now further direction will depend on hourly close outside the range of 5230-5300. If it closes above 5300 possibility of 5370-5400 and if closes below 5230 possibility of testing recent low roughly 5170
    Direction will be more clear after daily close above 5345or below  5230. If it gives daily close above

5345 possibility of resuming up trend are high and we will consider that recent fall is correction in ongoing up trend. But if it gives daily close below 5330 possibility of testing 5170 or there may be more downside.

 IMPORTANT NOTE : - 

WEEKLY CHART

 As seen in weekly chart during the week ending on 3 feb NIFTY given break out above the down trending channel. The approximate target for this breakout is 6000-6050. BUT CAUTION during the ongoing correction ( fall ) nifty should not give weekly close below the upper trend line. Otherwise NIFTY will be back in channel and the breakout will turn out to be false break out. If this happens possibility of testing 4530 once again are high, and it may make new low also.

DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.