Range bound trading market

I am back guys... I know now a days my comebacks are more than the postings. But what to do, now we are no more in college (IBA!!!), we are in competitive & exhaustive corporate world, in addition to all this changing house & again getting internet(BSNL) is biggest challenge in metros.

Now coming to today's posting, from last two weeks world markets have seen greater turbulence. Our markets from last 15-20 days were so volatile, intra day trader & short term traders almost lost their track because European Crisis. Started with Greece crisis, spread to Spain & now Hungary. All these incidents are leading to slow recovery if not double dip recession in world economy.

Now coming to our market if you remember, in last posting about Sensex (12th April to be exact) I have given a broad range for sensex from 16000 to 19000. And in this short correction & pull back, market almost bounced back from 16000 levels.


If you see the graph carefully drawing the lower lows & higher highs, now also market has the range of 16000 to 18400 to be precise. Once this range breaks then only we can say market will take either bullish or bearish direction. So until then it is better to book profit when market reaches to these levels whatever may be the positions (Long/Shorts) we are holding.

And if you see later part of the graph I have drawn couple of more trend line which are indicating Symmetric Triangle around 17000 levels. So from 17000 levels will be Doji state where in market may reverse itself from current trend or continue but with lot of momentum. So traders should be very careful @ this level.