Reigning The Nifty - 21st July, 2009

Daily Chart

Half Hourly Chart

Bullish Observations

• Moving Averages bullishly aligned on all charts.
• Oscillators on daily and intraday charts strong, daily macd moved above zero line in buy mode.
• Breakout from falling channel confirmed with huge white candle giving a target of 4810.
• Having scaled the 61.8% retracement levls of fall from 4693-3918, clearing 4693 is a strong possibility.
• Advance Decline figures is strong.
  

Bearish Observations

• Rising wedge on half hourly charts, break down of which could lead to some correction.
• Trendline joining January 2008 peak and recent high at 4693 will be strong resistance.
• 61.8% retracement of fall from 6357 to 2252 offers resistance at 4788.
• Rise has been too sharp so possibility of a correction is high.

Continue with longs keeping a trailing stop loss of 4300.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com