gvnarendra said:
hello amitbe,
that was what exactly happened today.the trendlines have still converged in and the price has been still maintained inside it. There might be a some strong move in one direction in a day or two.See the red trendline acting as an equilibrium to the up and down.
regards,
gvnarendra
Hi gvnarendra, thanks for the postings and the charts.
I believe what happened today is this, from this morning post:
AMITBE said:
The long term story, as they say, is intact.
Ironically, despite all that, there are many broken bones.
So dont be lured in by rallies, as the grounds ahead could well be full of betrayal.
The magic lies in volume.
Till volume returns, all rallies would be threatened by menacing jaws of gravity.
Such rallies should only be traded by those very clear of technical levels.
Was just watching the volume for today on a business channel, and all told it was pretty sparse.
So the story is, there is no follow-through buying coming in at higher levels.
Today the Nifty struggled to stay up at its peak, but then gradually began to fall with increasing pace.
At today's close, the lows have got higher with today being
3193.
Today's high couldn't make it to Friday's high, but yet for me the close has to come above
3237 for things to perk up to some extent.
As for the bear flag, it'll take a lot for it to give confirmation yet.
Satya's observation is a bit loose, but even so there's a point there.
And yes, with higher lows forming and the highs compressing the tops, the Nifty may make another lunge at higher levels sometime soon, but without follow-through buying, it could then drop quite sharply.
Still a wait and watch, though the intradayday volatility is giving lots of play in Futures in both directions.