Tuesday, September 1, 2009

Patience is virtue!!!

Patience is virtue in 4th wave corrections
Sensex is forming a complex pattern which should resolve lower
It is frustrating for a short term trader to be caught in such a complex pattern but it always helps to assume 4th wave as a complex correction even before it develops. It can save a lot of mental energy
We have a clear divergence in RSI
One can initiate a short position at this level with stop loss at top of wave b. The risk reward ratio looks appealing

It has been almost a month since Hindalco is moving in a very tight range.
It is imperative not to loose patience as Mr. Market has not proven us wrong till now, stop loss level at 116 is still intact
Please bear in mind Sensex has reached near its previous top but Hindalco is still ~6% below the high it made since March

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