Some of you would have closed the entire position 2 days back as suggested by me. For those who closed the 2/3rd position, you can take the 2/3rd short position again at around 3000, because the market has bounced from 2820 to 3000 now; close the 66% of the total downfall from 3100 to 2820 is retraced. That gives us an opportunity to go short again. For those taking fresh short position at 3000, keep the stop at 3150.
For those who didnt close the position 2 days back (I didnt), our stop loss continues to be 3150 and we are still open 2/3rd of the position.
Dont confuse these minor bounceback to saying that the downtrend is over. the downtrend is pretty much intact (the 100 DMA is still sloping down). Its only a matter of time when the next big downmove will happen. We need to be open with our short positions to take advantage of that.
Thanks,
Sachin