Before the Open.

Monday is the start of a new week, yet, the sharp down moves of the previous week are likely to cast a long shadow over this week’s price movements.

The Nifty had a choppy day on Friday. A gap down, then a rally, then down, then up, then down – this is what I would describe as choppy. Today could be slightly different. It is possible that the market may remain choppy in the early hours then determine a trend which takes it to the close.

I am tracking Gold for a swing trade. The short term trend is down on my chart – 180 minutes. A change of trend or a breakdown after a consolidation will give trading opportunities. Silver is a classic story of how fast markets can move on any one side. The rally took 3 months to reach 65,500, then the decline to 52000 took just 2 days. The message is: Always have an exit plan.