Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
follow me on twitter http://twitter.com/#!/lucksr

Wednesday, January 20, 2010

Reigning The Nifty - 20th January, 2009



Daily Line Chart



Daily Chart




Half Hourly Chart




Sensex Daily Chart




  • Bearishness of 'outside day ' mentioned yesterday played out ending in a huge bearish engulfing candle for the day. It is better visible on the sensex.
  • Oscillators on half hourly charts are weak and daily oscillators are in the neutral zone  showing weakening signs. The daily Macd has given a sell.
  • Emas on half hourly charts are bearishly aligned except the 200ema which gives support at 5222.
  • Emas on daily charts still bullishly aligned.
Range trading is very difficult and the nifty has been stuck in the range of 5160-5310 since the beginning of this month. If the level of 5169 gives way we have a confirmed double top with a target of 5050. Hope readers took note of recommendation to book partial profits. Remaining longs can be continued with a strict stop loss of 5169.




Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

5 comments:

Anonymous said...

double tops and bottoms are reversal patterns whichh are meaningful when these occur after sufficient long run of uptrend/downtrend. Also , these need to be formed over a period of time. On daily chart, it should be at least 6-8 weeks.what do u say?

Lakshmi Ramachandran said...

technical analysis can be applied to any time frame. The longer the time period the higher the probability of success

Anoop Kumar said...

So u were right in ur observation of double top?

Anoop Kumar said...

I was not saying about time frame. I was commenting on the reversal patterns. Reversal patterns on daily time frame should be forming over few weeks.

Lakshmi Ramachandran said...

yes double top confirmed with target around 5030. well regarding time frame , the larger the number of days taken to form the more powerful the pattern