Strong Momentum.

The Nifty has seen five days of back to back gains. This is NOT a bear rally. The gains are in line with what most world markets are doing. We are in an uptrend, and momentum is in the side of bulls.

Now, in an upmove, there will be pockets of resistance as well as correction (as in a down move). The first resistance comes at 4500 where the Nifty was standing yesterday. Then we have resistance in the 4700 – 4760 zone. A close above 4760 will tell us that a long term head and shoulder pattern is getting confirmed, promising prices we can only imagine. All of this is just probbaility and may not come about. That’s a different issue.

My approach is to assume we are in a strong momentum driven market moving up. Buying should normally be done only on dips. I do think that patience rewards the trader. Dips will always come. Identify your trading time frame, then buy on these small moves against the main trend. Have Fun!