Gold update with weekly chart - 1

Gold hitting higher high and last month move has been vertical , with 2 gaps, already. Support at $ 1150 - 1130 - 1100 closing below $ 1100 would arrest the uptrend. Target are valid as given earlier $ 1250 (161.8 % retrace ment ) and now I have added 2 more target of inverse shoulder. Anyhow longs can start book profit partially on every rise.

MUNJAL AUTO

Munjal Auto form Auto sector could be next mover, track this stock with immediate support at 97 for target 108 - 123 - 139.

Performers and Under Performer compared with Nifty

Nifty Fibonacci extension

Let see whether this works for Monday

Lessons I Have Learned During 40 Years as a Trader - GERALD APPEL

               These are hardly original, which makes them no less valid. As you might notice, many, if not most, are associated not so much with the stock market as with our own attitudes as traders. Unfortunately, most investors pay for what they learn over the years in some way. I have certainly paid in bad experiences for much of what I have learned. Maybe you can save yourself some money by considering the price of this book your payment and go directly on from there. Here they are, in no particular order:

               The news media, including the stock market TV channels, tend to be the last to know and almost always tend to follow stock market trends rather than to lead them. As a general rule, a good time to buy stocks is when the popular magazines and front pages of major newspapers are featuring stories dealing

with bear markets and investor doom. In a similar vein, stock market newsletters and advisory services have not had the very best of records in terms of market forecasting. The greater “gurus” have often tended not to be more correct than others.

              There might be many benefits in attending lectures, meetings, and technical classes regarding trading tactics and investing, but it is probably best to operate alone in making and implementing actual trading decisions and to assume, within yourself, the responsibilities of poor trades and the credit for good ones.

               Similarly, it is best to keep your results and performance private. The temptation to boast of your successes and fears of reporting failures will almost certainly not help your performance.

               Human nature operates against good trading practices. We enjoy taking profits and hate taking losses. As a result, traders often tend to close out their strongest positions too early (locking up the profit) and maintain their weakest positions for too long (“not a loss until I take it”) instead of letting their strongest positions run and closing out their weakest with small losses. Keep in mind that even the best timing models tend to be profitable only a certain percentage of the time, but their winning trades are much larger, on average, than their losing trades.

                The name of the game is to make a good (but not unreasonably good) return for your time and capital, not to feel “smart.” I know many, many people who overextended their welcome in the stock market as 1999 moved into 2000, not because they failed to recognize the dangers of the stock market, but because they were having such a good time feeling smart during the bull market that they hated to leave the party.

                Don’t confuse rising stock prices with being a financial genius.

                For most people, in-and-out trading will not be as profitable as well-considered

intermediate-term trading. It is not easy to overcome the additional costs in transaction expenses and bid-ask spreads involved in day trading and very short-term trading, although there are, no doubt, successful traders in this regard.

                It is better to miss a profit than to take a loss. Go back to Chapter 1 regarding this subject.

                For the most part, it is probably best not to operate at the market opening. There are pauses during the day, usually at around 10:30 a.m. Eastern time and around 1:15 to 1:30 p.m., when the stock market is quieter and when you can act with relative calm.

                Do not enter into an invested position without an exit plan.

                It is much better to trade with no more capital than you can comfortably risk.

               One successful trade makes us feel good. Two successful trades in a row make us feel pretty smart. Three consecutive successful trades makes us feel like a genius. That’s when they get us....

                Make note of your losing transactions. Have you violated some basic rules of trading or investing because of some emotional reason? There will be losses. Not every losing trade is a mistake. The stock market, at best, is a game of probabilities.

                Finally, many techniques and tools that are designed to help you identify market conditions that most favor profitable investing. There is no need to be invested in the stock market at all times. If matters

appear unclear or if you are less certain than usual (there’s no such thing as certainty regarding stocks), be free to simply stand aside until matters clarify.

                 form the book --------Technical Analysis Power Tools for Active Investors by Gerald Appel

Intraday update for 20 th November 2009.

Nifty spot - 4989
Support 4965 /4947 /4930 /4912
Resistance 4999 /5017 /5034 /5052

Buy(in first session only) if opens lows with stop loss 4930 target 4965 /4981 /4999 /5017, avoid later in the day.
Sell Nifty on rise, for Intra day,with stop loss 5035, target 4999 /4981 /4965/4947 ,

Hold for positional 
Sell Nifty on rise stop loss 5115, Target 4875/ 4810 /4745 - till expiry
Buy 4900 PE stop loss full premium, target 100 to 150.

TATA STEEL(537.15)
Sell on rise 541/ 544 stop loss 550 target 537 /532 if trades below 532 then target 517 /506 in coming days.

19th Intraday update

Nifty(5054.70)

Resistance 5078 /5095 /5113
Support 5026 /5008 /4990.

Trend - consolidation

Reliance(2100)

Resistance 2117/ 2128/ 2410

Support 2093/ 2081 /2070

Trend - down.

Kalindee Rail Nirman

Triangle breakout with volume.

Rsi also confirms breakout.

MACD In positive zone.

S.T Moving Average crossover.

Can target 167 to 184 above 160.

Near term support @ 147 on closing basis.

Copper update - Weekly chart

Copper after consolidating has given a breakout with near term support around $ 290 and can target $ 320 to 335. MACD is in positive zone and the two upward trend line could act as support for long term and intermediate term

Silver Weekly chart

Gold update with weekly chart

Gold has been making higher high and higher lows for past few months.

From the chart is clearly visible its trading above the inverted Head and shoulder pattern and the target for this pattern is around $ 1260(closing basis) to 1330.

Now with MACD is indicating negative divergence with price hitting new high and MACD is lagging behind and RSI too indicating overbought, it better to enter on dips with stop loss $ 980 for long term. Longs can move the stop loss to $ 1100 to protect the profits and can re-enter around the support levels given in the charts.

If Gold closes above$ 1130 for consecutive days, in next few days, then there can be huge short covering and last phase of panic buying with target of $ 1250 in short term.

Reliance with weekly chart

Reliance near term trend with chart

Nifty 50 stocks performance

Performance of Bse All Sector Indices from Recent high to Friday closing

Update of 6th November 2009

Stop loss(4936) Triggered for Positional trader as given,
exit all short position and wait in the sideline till a clear trend is emerged -
since we feel market can be volatile on both the side until next trend is clear known.

6th November 2009 - update

Nifty Spot- 4765.55

Support 4742 /4724 /4707 /4690 /4673
Resistance 4799 /4816 /4833 /4851 /4868.

Buy Nifty only if opens low @ 4724 best @ 4690,
Stop loss 4673 or 4657,
Target 4784/ 4799 /4816 /4833 /4851.

If opens high sell @ 4840, Best sell @ 4860 stop loss 4868,
Target 4780/4742 /4724 /4707.

Positional traders,
Buy 4700 pe or 4800 pe or even 4600 pe with stop loss 4936,
Target later if stop loss not triggered.

Best to exit all long positions once and re- enter, if Nifty closes above 4950 to 5000.

Nifty with Gann Fan line - Support levels

Nifty update with chart

Nifty for this week closed more than 5.75% in negative compared to the previous week. The weekly chart indicates, Nifty has broken the wedge with good volumes, targeting the 4350 levels. Immediate support zone is around the 4636 to 4580 level.
Nifty trading below 13 WEMA (4797) and 26 WEMA is around 4512.
RSI – as clear from the chart the, is at crucial support levels (yellow Line), break would signal stall in uptrend and could test 4350 levels.
MACD has turned negative and giving weak signal.
Nifty levels for this week
Support 4685 4617 4550 4482
Resistance 4738 4808 4878 4947

Nifty daily chart indicate that the downward trend line should act as immediate resistance levels, it’s around 4865 levels.
Moving Averages – Nifty trading below 21 DEMA-4935 and 55 DEMA 4823, indicating the uptrend losing the strength and weakness to persists for the days to come unless closes above the sloping trend line.
RSI is in oversold zone.
MACD is indicating weakness in the Nifty.

The strategy for this week,
Buy Nifty 4700 Ce at dips with stop loss 4630 on closing basis for a bounce back up to 4800 to 4860 levels.
Closing below 4580 would indicate the termination of the uptrend and more weakness would persist and could test the immediate previous low 4350.