Couldn’t resist. but I closed out 3/4th’s of my shorts at the close today.
Regular followers of my comments on this blog and on Just Nifty would know the similarity of this chart with the one I posted last Thursday, exactly a week back.
To be noted is the location of the POC very near to VAL and in a downtrend implies that strong hands were buying into the close.So I had to let go of a few shorts…
For tomorrow if we get an open around POC, one can buy for a quick 30-40 points with a Sl just below today’s day lows.Remember open has to be around the POC.
Last Friday, the index moved between the two ends of the bracket 5305-5395 and subsequently we have moved the same range all these days up until today afternoon.
I expect the tape to check for unfinished business at the lower end of this bracket (5305 thereabouts).From here it can be value area high or today’s lows depending on who prevails.
Below 5260, the high volume POC at 5225 calls.