S&P500 5th March 2012

 Weekly Chart

Daily Chart

Negative divergence on oscillators in weekly and daily charts shows momentum waning.No ! I am not calling a turn. Only cautioning it.Time to take profits, sit back and wait for the correction to enter at lower levels.



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Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 5th March 2012

Weekly Chart

Bullish Indications : The  Nifty is trading above the 40 and 100 wema.Breakout from the downtrending channel since November 2010 maintained.Macd continues to give an uptick above zero line.Weekly candle with long lower shadow indicating buying at lower levels.

Bearish Indications : Uptrendline broken and weekly close below it. 40 and 100 wema bearishly aligned.Stochastics moving down from overbought region in sell mode.Rsi14 has started moving down without reaching overbought zone implying lack of strength in the uptrend.

Daily Chart

Bullish Indications : The support line of the rising wedge was maintained.A higher high higher low candle was formed.The candle was a doji which may prove to be indicating a reversal in the downtrend.All demas are bullishly aligned.The fall is within a flag formation which is a bullish pattern.Stochastics moving up from oversold region in buy mode.Rsi14 has made a move up again above the 50 mark

Bearish Indications : Macd continues to give a downtick.Close below the 5 and 20 dema.

Half Hourly Chart

Half Hourly Chart II

Bullish Indications :  Low of 5268 made on the first day of the week maintained.Fall till now has been just around 35 % indicating the fall is just a correction.

Bearish Indications : Recovery attempts  after the initial fall to 5268 have been met with selling at the 50% fibo level first at 5458 and then at 5392 as shown on Half hourly chart I, indicating more fall.Oscillators too are making lower tops showing weakness.

The Nifty is in a short term downtrend which is to be treated as a correction as of now. Only a fall below 5100 would put the uptrend in danger.The mantra therefore is a buy on dips with stop loss of 5076.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 5th March 2012

 Weekly Chart

Weekly Chart II

Bullish Indications : The Bank Nifty corrected slightly below the breakout level of 10080 but found good buying support leading to a long lower shadow. The close was at the 23.6% fibo level.Breakout from downtrending channel maintained.Macd has given an uptick once again and Rsi14 has moved down but above the 50 level.
Bearish Indications :Uptrendline broken. Inability to maintain above the red trendline.Stochastics too is moving down in sell mode from the overbought region.Rsi14 turned down before reaching overbought region showing lack of strength.Rising  wedge forming with support at 10350.

Daily Chart

Daily Chart II

Bullish Indications : The support line of the rising wedge was maintained.Breakout above expanding triangle and downward falling channel maintained. A higher high higher low candle was formed.All demas are bullishly aligned and close above all demas.The fall is within a flag formation which is a bullish pattern.Stochastics moving up from oversold region in buy mode.Rsi14 has made a move up again above the 50 mark

Bearish Indications : Macd continues to give a downtick.ther rise from 7766 is within a rising wedge which is a bearish pattern with support at 10258.

The fall from 11226 seems to be a correction to the rally from 7766 lows as of now. The flag pattern should normally breakout upwards which would then be the next leg up of the rising wedge.The triangle formed, shown in red, indicates indecision to break upwards and out of the flag or downwards to form another leg of the flag.

Supports and Resistance marked on the charts.Half hourly charts show fibo levels.

Half Hourly Chart 

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 2nd March 2012

 Daily Chart

Outside day pattern on Wednesday and an Inside day pattern yesterday.  Will it correct ?  Or wont it? I have decided tp stop calling for a reversal till one really starts !

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 2nd March 2012

Daily Chart

The rising wedge support line was broken intraday but Nifty managed to close above it.I have redrawn the line to encompass today's low.The close was once again below the 20 dema (blue).All demas are still bullishly aligned.Macd has given another downtick and Rsi14 has turned down.Stochastics however is moving up in a buy mode.

Daily Chart II

 

A flag  which is a bullish consolidation pattern seems to be forming, which should have an upward breakout ultimately, but chances of testing 5163 before that are high ..

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com