Pushing Against Resistance.

There is significant resistance in the Nifty between 3400 and 3500. The Index is facing heavy weather, trying to cross this zone. The trend is UP, short term and intermediate. Therefore, short positions should be taken only intra day, that also on tests – when there is evidence that a resistance is holding.
If there is a correction, mild or otherwise, I will be taking it as a buy on dips opportunity. For me, as of now, the short term trend changes to down on a close below 3300. If short term trend is down, my trading volumes will be cut back because we are then seeing an intermediate uptrend and a short term downtrend – not a good scenario for traders.

The intermediate trend changes to down on a close below 3150.

Last week, I had written a post titled ‘The Angry Investor’ in which I had explained that many ivestors are angry with this rally. Today, Brett write on five things you never hear traders say when they are making money. These are:
Number Five: “Just wait ’til the bubble bursts”
Number Four: “It’s a slow market”
Number Three: “This market is manipulated!”
Number Two: “I was early”
Number One: “That had to be the PPT (government Plunge Protection Team)”

Remember, traders should go with market flow. If it is going up, it is going up. Ours not to question why. Also understand that markets will give confusing signals at turning points. If you are unsure of the trend, cut down on volumes, trade less.

Have Fun!