Head and Shoulders !!!!!!!!!!! Unrevealed
Charts always do give lot of information but that doesnt mean every INTERPRETATION by people be RIGHT.
Market tends to move in the direction opposite to the CONSENSUS more often than not.
In the last few days every other analyst on the net , TV Channels on the street has been shouting about the Head and Shoulders pattern as well as targets being 3600-3800 /12k-12.7k. This induced lot of speculators to rush into shorts.
But simple calculation gives us 1st tgt to be shoulder size which was around 1000-1400 odd points on Sensex and it did dip around 1000 points before reversing.
Have been consistently mentioning that After the first knock down the index has a very good possibility of testing the NECKLINE !!. Generally many late shorters get trapped in this re-testing !!!
Practical markets dont work according to copy-book templates !!!
Many readers kept asking why are they no stock specific shorts advised for positional shorts .... Hope the reason is clear that when markets are confusing waiting and watching is good !
For clients we did pick up mid cap stocks on long side and covered short trades in 1-2 sessions itself !! ... Again a fresh short trade taken today ( hope it doesnt hit the stop )
So currently a move beyond 14800 or 15100 ( Downtrendline and 15100 is previous top ) would only negate the Head and Shoulders Pattern. So continue to wait for turnaround signals on Sensex from these levels. If crosses and stays above 15100 we may look for further targets. Continue to be stock specific and disciplined !!
TECHNICAL ANALYSIS SESSION MUMBAI
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