technicals for 27th feb,2009

daily chart

Nifty played out as anticipated and being long was rewarded. The inverted head and shoulder pattern pointed out yesterday and shown in pink has broken the neckline making possibilities of further upsides more stronger. The nifty must stay above 2781 and will face resistance at 2806-2820. 2823 is the 50% retracement level of fall from 2970-2677. Crossing this level will target 2846-2880-2900-2940. Stop losses can be shifted to 2730-2735 levels which has been a significant level since the last four days shown as pink line on daily chart.