In Financial markets, trends persist and all one needs to do is have faith in the trend till it proves otherwise. Also, always trust your eyes because market keeps repeating the same thing till it stops doing it.
Here's Nifty Chart as of Feb 12 2016
Simple Observations that one could have made on Feb 12 based on the chart above:
Nifty is at 200 week ma on Feb 12 2016.
In the past, Nifty has bounced from 200 week ma.
On prior two occassions back in CY 2012 and CY2013 - Nifty rallied with strong intensity from 200 week ma. There is no reason to believe that it would not do again now. Hence, Nifty is a BUY at 200 week ma, unless it proves otherwise.
This was my precise observation post Feb 12 2016 price action -
Nifty is right now standing at the ULTIMATE support level https://t.co/Mkf9KW8SsH
— Deepak Singh (@smarket) February 14, 2016
What has happened since then? -
In terms of trade performance -
Yes, it's as simple as that. There is no complex science behind chart reading. All you need to do - keep your eyes open. In simple words, keep the mind open to possibilities that might be opposite to your belief system. I have captured these simple lessons in "Science of stock price action" video book.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers