Up-Down-Down-Up and the result was a neutral day.
Today the seller showed up as expected at 5400 ( +,-) levels and promptly took the market right down.I got into a short position at 5385 on the reversal from 5397 and booked out near VAL, which I expected to hold. It did- only for an hour and I got into another short position at 5251 from which I got properly whip-sawed and made an exit at 5374.The result was also a neutral day for me.
The whip-saw is the subject of today’s post and my reason to be slightly bullish on the market for tomorrow. Here’s the chart :
We knew from yesterday’s chart about the presence of the seller at 5395-5400 levels.From Today’s chart the buying tail from 5345 shows the presence of the buyer and his intention to defend that levels. Incidentally 5345 is the break-out level from a few days back.
I have often twisted James Dalton’s question quoted in my post here (and with due apologies to him) to find out a bit more about the buyer and seller. I often find myself asking during the trading day:
What is the Buyer (seller) doing?
Is he doing a good job in his attempts to take the market his way?
The seller had his chance to drive the market down today and failed ( besides causing me losses). We have noted earlier that his actions have been only responsive.
The buyer managed another higher close in value.He will take on the seller now at 5400 levels and I expect him to win this time around. This should point to a print of price above 5400 levels tomorrow.