Reigning The Nifty - 7th April , 2010

Daily Chart

Half Hourly Chart

• Doji star at resistance of 5385 on daily charts ,  ringing alarm bells.
• Volumes were marginally higher and breadth though positive , did not impress.
• Daily oscillators are in negative divergence.
• Half hourly oscillators have turned down from overbought zone.

 A higher high and higher low keeps the trend up. However , the doji star which is a reversal pattern makes one cautious. The doji star pattern consists of,

1. 1st day is a long white day.
2. 2nd day is a doji day that gaps above the 1st day.
3. The doji shadows shouldn't be excessively long.

A strict  stop loss of  5287 (10 dema) -5291 (low of bullshi candle of 5th April)  should be maintained on longs.

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com