VOLATILITY – IT’S A MEASUREMENT OF PRICE MOVEMENTS OVER THE GIVEN PERIOD OF TIME.
WE SEEN BIG VOLATILE MOVES IN SOME STOCKS IN RECENT PAST, WHAT IT MEAN EXACTLY?
IT’S A FEAR FACTOR FOR THE INVESTORS, FOR THOSE WHO ARE PANNING TO INVEST FOR 6 MONTHS TO 1 YEAR PERIOD, BUT ITS AN OPPORTUNITY FOR THE LONG TERM INVESTOR WHO LOOK TO INVEST FOR 3-5 YEARS PERIOD.
AS WE MENTION IN OUR RECENT ARTICLE ALSO, FIRST DECIDE THE WHAT KIND OF INVESTOR YOUR ARE, AND ONCE YOU DECIDE THIS THEN YOUR FEAR CAN TURN INTO OPPORTUNITIES.
As per our last week study we mention that nifty spot is having a big support at 7440 level but for the safer side we will use buffer level of 7400 and just see what it done in last week, able to made a fresh low of 7422 and given close above support level of 7440 at 7455 and from there onwards market reverse its trend and able to get near our mention target level of 7700 made high of 7685.
As we told last week it has developed some bearish patterns on weekly and daily charts but with the contradictory view it able to sustain the mention support level and able to give good bounce for whole week.
Now as per current chart development we can see that at the start of last week it has developed “HAMMER” candle and same was followed by “MORNING STAR” pattern on chart, so overall we can see that 7400 is a key level and immediate support level for this bullish trend.
We can even see that rsi able to move above 50 level in recent past, so this indicate that market is still having a scope to move more upside, because yet there is no “DIVERGENCE” or “CONVERGENCE” developed on chart yet, so with the upcoming movement market can look to develop such condition on chart and for that it has to do some higher moves now.
Overall for current week we can see that support level is at 7550-7590 range this will be the key range for coming week, if this support is sustain the upside we can see 7750-7850-7985 level in coming days.
Upside good resistance level is 7730-50 range if any negative close near to this resistance then we can even see some time being correction till 7650-7550 level and below 7550 level market can look for some good correction till 7400-7200 also.
But as of now for current week one can buy near to 7550-7590 range with 7550 stop loss on closing basis if able to move above 7750 level then hold this longs for target of 7850-7985 level.
Short only if able to given negative close or if form some bearish patterns near to 7750 level for target of 7650-7600 levels but without any indication please don’t make any short positions at any level.
Overall 7550-7750 are key point levels on closing basis so make your positions near to this levels with low risk, beyond this some good trending moves we can see so stay alert.