Trade Setup for 14.2.2012

Where are we?

From 5078 upwards,counting 5 waves:




And then:



Thus below 5341 it would be confirmed that the Correction has set in.So that is the safest signal to go short on rise.
But who can stop us from trying to catch the top?
And look how difficult it is to catch the top(if yesterday's experience was not enough).

Now this last upmove from 5341,ideally has to do more than 88 i.e, go above 5429.
It could do so either as a regular 5 wave form;
or
as a Diagonal;
or it can get truncated also.

And as of now,it seems to have chosen the DIAGONAL way to do so.
And so we have done 5341-5414.5 and got so many twists and turns in between that we forgot that ideally we have to do 5429+

So now,lets have a relook at how this DIAGONAL above 5341 has progressed?



And this seems like a 3*3*3*3*3 diagonal.Its respective arms so far having played out in following manner:





This downwave 5414.5-5382.5 may continue its down move as a zig-zag but would not go below 5351 and then an upwave of 63+ shall play out,taking us to 5429+ level.
so best trades for 14.2.2012 would be:
1.Go LONG around 5360 with stop-loss at 5351--target 5430;
2.Go short above 5430( as close to 5450 as possible) with SL at 5460 and trade it as a POSITIONAL SHORT for target upto 5050.
3.A tick below 5351 would indicate that this last upwave has got truncated without chalking out the above two options and then Short at every rise.

THUS BELOW 5351 IS CONFIRMED BEAR TERRITORY.

Raghu
Disclaimer: All these suggestions are for educational purpose.Trading in Markets is extremely risky.Do your own homework before stepping in.No responsibities if losses are incurred