Reigning The Nifty--16th April, 2009

Chart Showing Rising Wedge

Fibonacci Resistance Chart

Half Hourly Chart showing Supports

One more resistance crossed smoothly amongst so much skepticism. Me too amongst the skeptics. One more lesson learned to stick to my indicators and not try to call the turns. Well, I was cautiously optimistic so did not short but was not long too ! Anyway, no regrets. So long as I followed the technical signals.

So underlying bullishness was proved once again.

• the early morning correction of 70 odd points was gobbled up in no time and we rallied 100 points from yesterday's close!
• the 50% retracement level at 3450 was scaled smoothly.
• resistance at 200dema was scaled too.
• support at 3307 mentioned since last two days held strongly.
• scaled downtrendline joining May 2008 and September 2008 tops.

Indications of a correction still exist

• negative divergences in intraday charts intact.
• rising wedge still threatens.
• 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)
  

Looking at the pattern of the upmove 3650 should be the next stop which coincides with top on 14th October 2008 at 3648 . If this level is overcome then 3816 should be strong resistance as shown on daily fiboncci resistance chart.

Supports in case of a correction are 3400-3300.The rising wedge supports are at 3395-3450. Other support and resistance levels are marked on the chart.

Positional Longs could shift the stop loss to 3417 which was today's breakout point .

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com