Monday, August 2, 2010

No Negative Price Confirmation Yet, Be Cautiously Positive!



Sensex has shown an impulsive move up since last week of June

One possibility was that the 5 wave up structure was complete but given the recent strength, it looks wave v of 5 is moving up in an extended form
We have been constantly saying not to initiate any positions unless we obtain some kind of price confirmation and that strategy has paid off well. We are working on a reactive strategy rather than predictive strategy
Sensex did not move below the key levels shown and given the relative strength of Indian Markets I would like to be cautiously positive!
A long position can be initiated with a strict Stop loss 17850 over a short term period. We will update of any weakness seen or when other higher probable wave structure looks to be developing