Reigning The Nifty - 31st December, 2009

 Daily Chart

 

Daily Line Chart

Half Hourly Chart

• Today's black candle was a bearish engulfing candle and gave confirmation to  yetserday's shooting star's bearishness though on low volumes
  
•  Negative divergences on daily and weekly charts persist. Daily Line charts show negative divergence with the OBV.
  
• The close is below the breakout point of 5182 which takes the Nifty back into the range of 4942-5181.A close below this level will keep the range intact on the weekly and monthly charts.
• The breakout point on Line charts is at 5148 which will give support.
  
• The 5,10 & 20 ema are bearishly aligned. The 50 ema gives support at 5141 .Below this the earlier low of 5129 gives support.
• Fibo supports are marked on the charts.

The strategy of holding longs till decisive break of the rising wedge continues,  but hedge your longs. Non savvy traders could  keep a strict stop loss of 4940.

 
Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com