Hi folks sorry I have been extremely busy. Too busy to post… Getting ready for a wedding tomorrow…
Some of the trades I did.. short on Kep Corp on breaking 4.3 support level. Huge downside to go till the next major support. I will chart this again, and screen for fibonacci supports too. Gap resistance remains from the gap down at opening price today. SembMar did not break the 1.6 support however so no shorts there. STE appears to be trying to break out but it didnt come with volume so did not enter as well. I did reverse my noble shorts 2 days back on breakout. So I covered all the shorts and went long on half of my shorts as a tikam. A losing trade for the short. I will take a look at the chart again soon! I believe it tried but failed to break 50MA resistance.
The US market is gonna be open for half a day only. Volume is expected to be light. Light volume tends to favor upside on the US market but there is no stopping it from retracing a bit. It is due for some pullback and if it doesn’t happen tonight, next week will be the week to observe that pullback. What is key is that it does not break supports, which will pave the way for further upside.
I am totally shagged out… and I need to settle more stuff before tomorrow. I will return!
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hi prince, you mentioned 20 MA is like a ceiling previously. how about 25 and 50 MA? what are their implications?
hey koori. The thing about MA is, regardless of it being a support or resistance, it tells u the price people are willing to buy (support) or sell (resistance).
The longer the time frame, the stronger it is. 20MA represents 1 month of trading activity. Actually u can use any figure u want but my research (along with others) shows that 20 days is a good figure for short term. 50 and 100MA for mid term and 200MA for long term. Apart from resistance, the direction of the MA line also tells u the respective trend though it is lagging in nature.
So in short, 20 and 25 is about the same (though I prefer 20, but I do turn both on sometimes) and 50 is stronger than 20 while 100 and 200 is stronger than 50 and 20MA. Anything after 200MA is not really meaningful. The way I use 200MA too, is when the price falls below 200MA it is bear. Above it is bull. So when things turn bear, I will look to short (ride with trend) while if it is above, I will look to long. It is not the only way to see the trend of course but I thought I’d add that in
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