Reigning The Nifty--15th April, 2009

Half Hourly Support Chart

Fibonacci Resistance Chart

Daily Charts

Half Hourly Chart Showing Divergence

I was "cautiously optimistic" yesterday and continue to be so. This inspite of having an up day.


Bullish Case :

• Day's close above the green channel shown on the daily charts.
• Oscillators RSI and Stochastics overbought but showing strength.
• Doji pattern of previous day nullified as a higher low was made yesterday.
• All corrections are only intra day indicating good buying support.
  

Bearish Case:

• Divergence in daily Macd intact.
• Resisted at 200dema second day in a row.
  
• Rising wedge formation continues to threaten.
• Divergences on half hourly charts intact.
• As per past history we are due for a correction (up legs have consumed just 5 to 6 weeks mentioned in my weekly write up)
• Good yo-yo during the day indicating confusion about direction of trend.

So prognosis remains much the same. Signs of uptrend waning are not strong enough to call shorts. Positional longs can shift stop loss to 3335 low of 13th April.

Next resistance is 50% retracement level at 3450 of fall from 4650. 200dema is at 3395.

Supports of rising wedge are at 3335-3390 on half hourly charts. On daily charts supports are at 3378 (Green channel upper trendline ) and 3323 (rising wedge). Fibonacci and other important supports are marked on the chart.

Trade cautiously with appropriate stop losses.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com