Sunday, March 28, 2010

Update on The Ultimate Momentum Signal - 29th March, 2010

The Breakout - Day 18

The Nifty Future Tested the High..! But, What Next...?

The story so far :

Nifty Future (NF) : Hey honey, I just tested my previous high on last Friday. But, why didn't you join me?
Nifty Index (NI) : What can I say ? You can do whatever you like..! But I am dependent on my constituents. And some of my constituents are not cooperating enough.
NF : Will they cooperate if I try again ?
NI : Who knows... !  May be it depends on what other world indices may do...!
Sensex : Thank god, my future is not asking any such questions...! 
( To be continued in the next episode. Monday to Friday 9.00 AM to 3.30 PM )

So far so good. But what next ? No one knows for sure. This is the technical picture of the market. The US indices closed near the lows of their trading ranges on the last two trading days, after advancing  to higher grounds in the early parts of the days. Is it a temporary loss of momentum or a reversal of the trend ?  Now let us check the Nifty Futures Chart.

Nifty Futures  - Daily Chart

The resistance is at 5310 and the intraday trailing stop has moved up to ( High 5310 less 2.1 % )  5198.

The Updated Momentum Signal Spreadsheet 

The updated spreadsheet showing the Momentum Signal as on the close of   26th March 2010, is given below.
The value of the Ultimate Momentum Signal has remained in the bullish territory for the eighteenth day after triggering a buy signal on the budget day, the 26th of February.

 Projected Momentum Signal Close Values

The projected levels of closing values required for momentum shift / neutrality / continuation as on the close  of trading  on 29th 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.

Please note that the minimum closing values required for keeping the Momentum Signal in the buy mode ( i.e. above +50 ) have gone up to 5279 and 5273 for the futures and the underlying index respectively.

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