Trading with Median lines is a system and a leading indicator suitable for Swing trading.I am following this strategy for Nifty and Bank Nifty with good results.Those interested to trade with Charts and Price action to analyse target price, support and resistance levels will find this strategy very interesting.

Feedback welcome!Happy trading...

Wednesday, December 8, 2010

Nifty Closer to short term Support....

As noted yesterday, "c" wave reached 5890 level at the red median line.Next target is 5840 levels which should be reached tommorrow and expect reversal at this point of the short term correction.Divergence in Rsi is seen in 15 min charts which is positive for the next upmove.



Two scenarios for tommorrow:
1. First half of the day, price moves downwards , touch 5860 levels / 5840 levels and make a "V" turn.This will a very positive sign for upmove to commence.
2.Morning the price can move sideways / bounces up mildly, reaches upto 5950 resistance levels and then move downward.If the close is below 5850 / 5830 levels EOD then will wait for another day to decide to go long .Downtrend / Uptrend confirmation will emerge on Fridays Action.

3 comments:

  1. Hi Kavima,
    Good Analysis. As pointed by you, I think the upmove has commenced. Wether the Target - 6260- remains the same?

    Regards,
    Veer

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  2. hi veer
    If 5840 levels ( 38.2 % R of prev upmove)holds well this week , the first target up would be at 6090 level ie prev high and then towards 6260 levels.if the next upmove moves beyond 6260 then I would label it as the third wave .I make my projections with a combination of median lines / fib levels and partly with EW analysis - if i can count the waves :-)

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