Hurst Cycles Trading Software - Accurately Forecast Nifty and Stock Cycles

Thursday, May 29, 2008

Market Update - May29th 2008

Hello Friends,
I am back from vacation playing on all the slot machines in Las Vegas....Had a fun time...Was tough for me to even trade let alone post updates here...But will try to post more regularly from now on...Daily chart below.




Earlier I posted I was looking for a bounce...We got the bounce but it was a weak one that was quickly sold...What is worrying to me now is the huge figures FIIs are selling off nowadays...Not sure what is going on but situation looks quite dicey. I think we might be setting up for a big drop but this drop might not go below earlier lows of 4400 area. However we will see that when we get there...
Right now I am still long...I am looking to exit this on any bounce I get...I am not sure what yesterdays action was...It was quite scary to say the least....I am wondering if this was the usual expiry shenanigans or something more serious? No easy answer but next couple of trading sessions should tell us.
4800 is of utmost important. Break this, and a mini-crash is even possible.
Trade Safe. If you are not sure, stay out.
4920 on upside is strong resistance. Above this, 4950 area.
If we sustain above 5050 for sometime, I will say that correction is over as the falling channel would have broken to the upside....If not, lows await us.
I am looking to close longs soon and get flat...Or build some shorts...However I am not confident of this market so best thing might be to just stay out for some time.
I apologize if I sound bearish but situation is not clear at this point. I will wait for 2 more days before sounding more confident in either direction...I have indicators showing conflicting viewpoints..Better stay out when not sure.
Bottomline is that 4800 area should hold for the bullish case to remain alive - Short Term.
Best.

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