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Thursday, September 2, 2010

Update on The Ultimate Momentum Signal - 2nd Sept. 2010

   Nifty Poised to Test the Resistance at 5550 ... ?


The last post on this blog had claimed that the so called subtle gap may be filled in Wednesday's trading and the Nifty future may spend some time before attempting a test of 5465. The possibility of a covering rally above the 5465 was also hinted. Well all these have happened in the Wednesday's trading session. As the international market have also rallied in a strong manner, Nifty futures seems to be poised for a test of the minor resistance at 5490 and thereafter the previous high of 5550. 

Nifty Futures - Daily Chart  


In case the Nifty futures rallies above the 5490 levels, the 5490, 5450 and 5390 levels may act as minor supports on rebounds.  

Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as at the close of the trading on  1st  September, 2010 is given below :  
Both the indices, Nifty and Sensex as well as the Nifty futures have closed in the neutral territory according to the Momentum Signal system.
 
Projected Momentum Signal Close Values

The projected levels Momentum Signal values applicable to various ranges of closing values of the Nifty Futures, Nifty Index and the BSE Sensex,  as at the close of next trading day, ie. as on   2nd September, 2010, are given in the following table.

    Please click on the table to enlarge. For more info on the above table,  please click here.  

As matter of abundant caution, it is reiterated that the market may still be range bound by all effects and therefore, the risks of the system indicating whipsaw signals are extremely high if the markets remain range bound.

"Readers of this blog may please note the following  'Risk Factor' which is being  repeated almost daily these days. The markets may be trading in small ranges at the top end of a slow climb and for all practical purposes the trading may remain range bound. Range bound markets are not suitable for the  profitable trading of the Momentum Signal system."
 
"As the Momentum Signal is primarily a trend following system, it may indicate whipsaw signals in range bound markets. As such, all readers of this blog are requested to read the various pages describing the system and understand all the intricacies of trading the Momentum Signal and it's risk factors too. Please do write in your comments and suggestions."

Cheers and Prosperous Investing and Trading !!!

To access and/or download  the free online Position Limit Calculator click here.

To checkout the five year history of The Momentum Signal Spreadsheet click here

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