Trading Nifty on 28-05-2012

My guiding light for the day:

Probability 2

In this Probability 2, Yb as zig-zag is shown. Though the guidelines say that in a zig-zag B(written as sw2 here) should not be doing more than 80% of A(written as sw1 here). But markets are supreme---so this Probability can not and should not be totally ruled out.

11.00AM
Price RSI divergence on 5 min charts
Difficulty to cross 4960
and overbot TA on 5 min chart pointing to a dip.
Should not go below 4913

11.20 Am
The tick above 4965 has ruled out the Probability2 mentioned in the morning.
All dips to be bot now for a target of 5015.
SL for longs now at 4913
1.25 PM

2.45 PM
A strict TSL for longs at 4943 is suggested

3.15 PM


Now that the last subwave has crossed 35.5 so we are very well on our way to 5020.

EOD
So Yb started from 4789 upwards now stands labelled as:
YbA in progress:
sw1=4789-4956=167
sw2=4956-4804(ended at 4810)
sw3=4810 upwards in progress
(i)=4810-4908=98
(ii)=4908-4856=52
(iii)=4856 upwards in progress target minimum 1.62*(i)=159=5015
4856-4932=76
4932-4889=43
4889  upwards in progress as 5 wave form(4889-4936;4936-4913;4913-4971;4971-4943;4943 to 5020(likely) in progress

Raghu