Another Breakout – A big One ??

The Nifty is pushing against 5350 once more after two earlier attempts to breakout did not quite succeed. The range around 5350 is significant since there is very little resistance between 5350 and 6360, the 2008 bull market top. This means, once prices move above 5400 then there may be very little resistance to their upward journey.

Breakouts: Points of Maximum Risk

The breakout from 5350 is an opportunity to enter a new up move. It is also the point of maximum risk since the failure of this breakout could mean entering at the top. Breakouts are always like this. If they work, you make lots of money and if they do not, you end up having entered the market at the worst possible location.

I usually trade these breakouts. I understand the risk. I also understand the potential rewards. But each trader has to decide on her own risk level. Do a search of this blog and you should find a number of posts on breakouts. The search option is on the right side, just scroll a bit.

ATA monthly meeting

The next monthly meeting is scheduled for April 24, Saturday in Delhi.