Trading the Nifty on October 10th

Trading the Nifty on October 10^th

In the last trading session the nifty has opened above the pivot indicating a good run. It did see the high point of 5728 and closed at 5704. The volume is also lower than the previous day. This is disappointing and indicates weakness persists.

While the Europe is not well today, the Asia pacific excepting Nikkei and Straight Times have done fairly well. The chart pattern suggests that the Nifty can still lose some points. If the nifty opens above 5704 it can still manage to touch the levels of 5725, 5738 and above. On the downside it can test 5674,5662 and 5649.

NIFTY	CLASSICAL	CAMERILLA	FIBONACCI
Resistance 4		5733
Resistance 3	5781	5719	5755
Resistance 2	5755	5714	5735
Resistance 1	5730	5710	5723
Pivot Point	5704	5704	5704
Support 1	5679	5700	5684
Support 2	5653	5696	5672
Support 3	5628	5691	5653
Support4		5677

The above Pivot levels are valid for 10^th of October 2012

Happy Trading!!

Lead Zinc Spread Trading

CHART OF LEADMINI FRO SEPTEMBER TILL DATE

The chart above describes the direction in which the Leadmini is moving. It is currently trading below the 15 days moving average. Although it is still above the 50 days moving average, it could soon test that level. Almost major indicators have generated a sell call and this counter is likely to see further low prices. Therefore trading long in Leadmini should be avoided.

CHART OF ZINCMINI FRO SEPTEMBER TILL DATE

The Zincmini chart described above does not differ much from the Leadmini. As we know these two meals do move in tandem the major point ot note is the Zincmini has come below the 50 days moving. This indicates its weakness. This metal too will lose more value as we understand from the chart. So shorting this metal is the appropriate strategy.

The spread gap is now at 12 although we could have entered a Bear spread it much better to look for a Bull spread opportunity, because it will likely to give more profits. Let us wait patiently till we find such opportunity. Even at this point it is possible to enter a Bear spread, because the current trend is unlikely to reverse abruptly. We may book small profits.

Happy trading !!