Thursday, February 25, 2010

Update on The Ultimate Momentum Signal

Is the Breakout imminent ? 
                                                                                Nifty Future - 20 Minutes

         

  

 <<< Nifty Future - Hourly


The Nifty futures traded sideways for another day as usual ! As pointed out in the previous posts, not only the daily moving averages but also the hourly and 20 minutes moving averages are converging to   a narrow band,  increasing the chances of a break out in either direction. The Budget or a trigger from the world markets can   add fuel to the breakout.
                                                                        



                                          Nifty Future - Daily with ATRs                                                                
                                                                                
The two day average TR has also  reached almost the two and half year low of it's value it  reached just before the end of the ten month old  uptrend.



The Updated Momentum Signal Spreadsheet 

The updated spreadsheet showing the Momentum Signal as on the close of  25th, Feb. 2010 is given below.
 
The Signal indicated a neutral momentum for the third consecutive day today.


 Projected Momentum Signal Close Values

The projected levels of closing values required for momentum shift / neutrality / continuation as on the close  of trading as on 26th, Feb. 2010 are given in the table below. The table also include the projected closing values of BSE Sensex required for momentum shift / neutrality / continuation.

 You can click on the table to enlarge.

The projected neutral ranges of the futures and the indices have narrowed considerably by today. 
Is the Breakout imminent ? 

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