Saturday Musings

I have some thoughts on “Trend or Counter Trend”. You can read it here
The Nifty is now pushing against support which comes in at 2740. Below 2740, there may well be a decline down to 2600.
The Index fell on last Tuesday, creating a gap. This gap is filled if and when the Nifty moves above 2850. Therefore, a long position is justified only after a gap is filled. Later, if the Nifty does decline, new patterns will form and these patterns are likely to give different buy signals. Now, if the Nifty crosses 2850, then it has to travel from current 2740 to 2850. I will not like to trade this up move, since at this time, we have no way of saying that the gap will be filled.
All of this creates some confusion. That’s what the market is doing now, so we have to accept what the market is giving us.