Update on The Ultimate Momentum Signal - 18th Nov. 2010

Nifty Futures Approaching Support at 5940 - 5950 !!!

The last post was titled ' The Rebound is On !' expecting a small rally and at least, a test of the next resistances at 6175 because of the sharp fall happened in the Nifty Futures in a short  time of just two days. Even though the rebound started a bit earlier than expected, it's demise was also equally early.  

Last Tuesday, Nifty futures opened flat at 6128 and almost immediately sold off by around 30 points to record an intraday  low of  6100. Since the Nifty future was still in the recovery mode, this sell off was bought by traders initially. However, the rally from the 6100 area only barely touched  the previous day's last traded price at 6134.

Nifty Futures - Intraday Line Chart 

Original Picture Source : NSE India 

Update on The Ultimate Momentum Signal - 16th Nov. 2010

The Rebound is On !!!

In the last post, it was mentioned that the fall has already traveled a long distance and as such, traders may look out for a rebound from the lower supports. Even though the lower supports mentioned were at the 5940 to 6000 levels, it seems that, Nifty future has already started the rebound from the higher support levels  between the 6050 - 6090 levels. Now let's see how this reversal could have been identified in the intraday time frame.  

The chart below is a snapshot of the intraday chart of the Nifty future and the underlying index available to the public from the NSE, India website. The chart shows the trading of the morning session till 12.00 Noon. The dark brown line indicates the Nifty futures and the orange line represents the Nifty index. As the chart shows, Nifty futures opened flat and sold off almost

Nifty Futures - Intraday Line Chart

Original Picture Source : NSE India