Feb 9, 2011

EOD Update Feb 9 2010

Volatility always increases when a trend is going to change ..

Today was such a case... After the morning low as expected NF rallied to 5347. After the high made NF stayed in a tight range and then collapsed to make a short term bottom. why a short term bottom because every time NF fell it didn't rally this time NF rallied from the low today with a power . So apt to say a short term bottom in place. A dead cat bounce is sure to occur from these lows and may be it culminates into a trend reversal . But too early to say that.

For tomorrow too expect a rally till 5380. So the strategy should be to buy the lows with strict SL of 5227. On the upside resistance at 5347 above which 5380 would be visited. On the downside not expecting too much as already oversold and a bounce is due . Any how if it breaks 5227 then 5169 is the stoppage for the carnage.

Polaris is still a good bet on the upside.


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