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Tuesday, March 16, 2010

Cup with handle formation

i have found in the intraday banknifty future chart the 'Cup with handle formation' it is similar in appearance to Rounded Bottoms. Like rounded bottoms, the pattern includes an elongated U-shape.The pattern is similar in appearance to a coffee cup with a right-side handle, and indicates the potential for an uptrend.
Any how that was happened today trade.In our yesterday post we gave positional sell and today we asked all our clients to cover the Short and when it touched the 9000level many people in my chat box were asking me to confirm down trend for further sell and i strictly objected and said no to all.Why i said no to short means the formation i could see and it was incomplete and the afternoon trade the formation was complete and it really shoot up to 9140level.
Usually this cup formation happens in 1-2weeks time and it is a kind of cosolidation for the uptrend.But today i am surprised to see the same thing happend in intraday chart and the technical parameter that worked verywell.
Now what is the next move of bank nifty future?
Hence the above said formation i strongly hoping the banknifty behave eratic on the upside atleast for the next two sessions.So play safe and when ever you get a chance at peaks exit your long that will be ideal.

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