If you think you are an Trader, you should be minting money in this market. I prefer to call myself an investor. On a serious note, the volatility in the markets are giving multiple opportunities to TRADE for the serious traders.
What to expect from here-on : We have seen about 200 points drop from the highs in the series and the series is just in its first week. All the so-called strong supports and the mighty 200 DMA has taken a bow. But, I do expect an bounce-back from the current 5550 levels. If this level falls then we are seeing further 100 point drop to fill the gap from September.
Also, bounce from here will help Bears build the next shoulder (right shoulder) for the Bulls (to cry on : – ). I see an Head & Shoulder pattern developing, a bounce from here and subsequent fall will build the right shoulder - the break of neckline, where we currently are will close the gap and give a swift 600 point move (target of the H&S pattern). The bounce should take us to 58xx levels but, now I strongly feel that 59xx level is history. Just like the rounding bottom pattern which I was hoping to take Nifty to 59xx levels –
check here
Lets wait and watch, how this pans out. Below are Nifty charts with different time frames.
