The Last Level, like
BULL, BEAR Levels and Golden Level, forms a very important
price level for Nifty and other indices primarily. Works
equally well on stock prices too.
If the Last Level is broken by more than 2 points and
reaches the 3rd point, either
on up or down sides, the price may seen a massive move -
often going up or down by 60% to 85%.
No wonder then that the Last Level has special
significance for the traders.
Bear Market
scenario
Another significance of the Last Level is that it is
a barrier to overall market beginning a new move. If a
bear market bounce up breaches the Last Level on the
upside, expect a bull market to begin for an
intermediate period (Fig 1). The upside can be another
60%-85% more.
Or, if in a bear market, the bounce up cannot breach
the the Last Level, price will again become weak and
is very likely will create a new low soon.
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| Fig 1 |
Bull
Market scenario
If in a bull market, price corrects down to the Last
Level and bounces up, consider the bull market to be
intact and price to make new high soon.
However, if the downward correction is not halted at
the Last Level and moves below it, the bull market
may be over at least for intermediate period (Fig 2).
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| Fig 2 |
As price has the tendency to move sideways and / or
even have a small rally in between the Golden Level
and the Last Level, one has to be careful in trading
and strictly follow the relevant Buy/Sell set-ups
only and take periodic profits specially if the
run-up or run-down to the Last Level has happened in
the same day.
Also see:
BULL/BEAR Levels
BUY/SELL Set-ups
Reversal Trades
Stop-loss
Arunangshu M Lahiri is available on mobile nos. 097400-76212
(Bangalore) and 093308-76212 (Kolkata) as well as via
mail:
prismintraday@gmail.com.
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