Update on The Ultimate Momentum Signal

  The Breakout - Day10

  Loss of momentum...?

The Nifty futures opened at 5133 last Monday. It traded sideways for most of the week and closed at 5148 with weekly gain of 61 points. The implied volatility of the Nifty options have shrunk to below 20. The weekly ATR has reached 1.59 %, which is very near the post bear market lows. Even though the market may trend upwards with low volatility for some more time, it seems that the time has come to tighten the stops on all long positions. The weekly chart of the futures showing the price, moving averages, and ATR panels is given below.

Nifty Futures - Weekly Chart - Price, Moving Averages & ATR

Update on The Ultimate Momentum Signal

 The Breakout - Day 9

 

Now What....?

The Nifty Futures opened near the yesterday's close at 5119 and tried to test the yesterday's low  in the first hour. It failed the test of low and thereafter, the futures rallied further. It closed at the week's high at 5159.  Now, the question is how much steam is left in the uptrend !  Let us return to the Momentum Signal model and it seems that the uptrend is still on.

           Nifty Futures - Daily Chart

The Updated Momentum Signal Spreadsheet 

The updated spreadsheet showing the Momentum Signal as on the close of   11th March 2010, is given below.