SHORT TERM TRADING STRATEGY

NIFTY DAILY

As shown in the daily chart nifty is forming RISING WEDGE. The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength.

That means the ongoing uptrend is losing its strength and there is possibility of correction. Our trading strategy which is based on hourly chart also given indication to book profit on Friday.  But this pattern will indicate that there is possibility of correction but it is not sure. There will be more chances if it breaks previous 2 days low.At the same time if it gives hourly close above 5340-5350 it may go to 5430. So be cautious and trade with strict stop loss.

If there is correction the supports will be 50 EMA on daily chart i.e. 5125, 200 EMA on daily chart i.e. 5160, and the gap created on  29/6.

SO WHAT SHOULD BE TRADING STRATEGY NEXT WEEK ?

 A) if next week nifty first goes down and gives hourly close below 5300, then short (sell) nifty with strict stop loss of hourly close above 5335 for target of 5150-5180.
      Again buy near 5150-5180 with stop loss of 5120 for target of 5430

B) if next week nifty first  goes up to 5430 then sell with stop loss of hourly close above  5450 for target of 5180-5200.
       Again buy near 5150-5180 with stop loss of 5120 for target of 5430

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