Nifty Future opened inside the previous days last hour range of 5396 to 5415 at 5410 above the previous days close of 5406. Nifty Future immediately with high volume moves below the previous days close of 5406 till the previous days last hour range low of 5396. Given below is the Nifty Future 5 min price chart with notes on the volume based action.
1. Day starts with down move with high volume below the Previous days close @ 5406 and halts at the Previous day last hour Range low of 5396.
Conclusion: Bears have shown their intent and a pullback to the previous day close 5406 is a short entry with a stop loss above the days high of 5410 and target of move below 5396.
2. New low created with moderate volume signals that Bears are in control but are not aggressively shorting. No sign of up move with volumes
Conclusion: Expect deeper pullback and Nifty Future could pullback above the first resistance of 5396 the previous day range low. Also the Nifty Spot level of 5365 corresponds to the days pivot is close to the days low
3. Up move starts with high volume but price high created with low volume. Strange behavior because after a price high. Bulls will attempt to maintain price at the highs with high volume support
Conclusion: Up move could be a result of shorts placed at the 5396 level and after shorts are covered. Bulls are absent so down move resumes.
4. Down move starts with low volume and price low with high volume. Once the 5396 level is taken Nifty falls in a fast and furious manner to the days low.
Conclusion: Bears had successfully brought the Nifty Spot level to close below the 5365 level and with high volume maintain Nifty Spot price below 5365.
Summary: A tough day to trade with many break out failures. Nifty Future traded in a 5382 to 5406 i.e. a 20 point range for most of the day. Difficult to trade the Break out failure as there was no decent pullback. There was no good trade today even though the price extremes were the Decision points like
a) Previous Day Closing Price
b) Previous Day last hour Range low
c) Previous Day Range high before breakout and big up move
No comments:
Post a Comment