Tuesday, March 16, 2010

Update on The Ultimate Momentum Signal -17th, March 2010

  The Breakout - Day 12

  Finally, Reliance Joins the Party...!
Till yesterday, the Nifty futures were trading sideways and this blog had pointed out the non-participation of Reliance in the rally. This is what we wrote yesterday :-

"The fate of the uptrend seems to be depending on the participation of the market heavy weight Reliance. Till today, Reliance seems to be unable to break out of the convergence of the 200, 100 and the 50 day moving averages at the 1030 - 1040 range. See the chart of Reliance showing the convergence of the various moving averages."
Today, Reliance broke out of the convergence zone of the moving averages and see what happened to the stock and the markets...!
Reliance - Daily Chart with Moving Averages  

Reliance started the uptrend right from the morning and never looked back. Today, the Nifty futures traded above the yesterday's selling zone of 5136 in the opening range itself and once it  crossed the zone for the second time, it too never looked back. 

Nifty Futures - Daily Chart
The Updated Momentum Signal Spreadsheet 

The updated spreadsheet showing the Momentum Signal as on the close of   16th March 2010, is given below.
 You can click on the table to enlarge. For more info on the above table,  please click here.

The Momentum Signal has returned the maximum value of +100 for the twelth consecutive day.

 Projected Momentum Signal Close Values

The projected levels of closing values required for momentum shift / neutrality / continuation as on the close  of trading  on 17th March 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. For more info on the above table,  please click here.

Even though the trading system rules recommends a trailing stop loss of 2.5 % from the maximum favorable excursion, it may be reduced to 2.1 % due to the long nature of the uptrend and the significant non - participation by some of the Nifty constituents in the current rally. 

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