Nifty is falling consistently. It is perilously close to our last hope for a bullish reversal, and things don't look too good. In the meanwhile the short trade we took around 2nd May, is making us richer by the day. The stops are intact, One should not look to close out the position unless prices close above the 5 DEMA. Now a close below the 4766 level opens up a new bearish count, which has a potential to take prices much much lower from current levels. Considering we are already short, and the trade has moved handsomely in our favor, we can afford to wait and watch. Contra trend trades are very enticing, but unless there are clear signs of reversal "abstinence" is what will keep us in the game. Momentum indicators are poor performers in case of persistent trends, so don't fall prey to their signals, just yet. Just ride the wave down till the last drop of juice is out. Those who have missed an entry in the downtrend, the risk reward ratio will become worse by the day, I suggest wait for a clear 3 wave bounce to short, down trends are spaced with sharp recoveries, so just when one such recovery is resisted at important levels, you can enter, but with very tight stop losses, Its always better to "die another day"!!
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