Sensex is following a 4 month cycle. Prices bottomed just 5 days before the cycle lows, in form of Wave A
Prices have rallied steeply after that and even crossed 76.4% retracement of the late October fall
This steep rally was unexpected and was a surprise but we did mention in our previous blogs that prices are moving very fast, faster than we can think of.
When prices move fast in our direction for sometime and suddenly takes a "V" turn moving in opposite direction with same pace, lots of emotions creep in forcing people not to adhere to their "Risk Management" and "Stoplosses". This is precisely what Mr. Market wants -- proving maximum number of people wrong in either direction
Please adhere to strict risk management in times when markets are moving fast and not behaving exactly the way we want it to
As long as prices do not cross the top of previous wave (5) i.e. 17493, we still hold bearish view with very appealing Risk / Reward ratio
We will look at price movement and adapt an alternate count once the above said level stands broken. Till then maintain your short positions!
Prices have rallied steeply after that and even crossed 76.4% retracement of the late October fall
This steep rally was unexpected and was a surprise but we did mention in our previous blogs that prices are moving very fast, faster than we can think of.
When prices move fast in our direction for sometime and suddenly takes a "V" turn moving in opposite direction with same pace, lots of emotions creep in forcing people not to adhere to their "Risk Management" and "Stoplosses". This is precisely what Mr. Market wants -- proving maximum number of people wrong in either direction
Please adhere to strict risk management in times when markets are moving fast and not behaving exactly the way we want it to
As long as prices do not cross the top of previous wave (5) i.e. 17493, we still hold bearish view with very appealing Risk / Reward ratio
We will look at price movement and adapt an alternate count once the above said level stands broken. Till then maintain your short positions!
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