Monthly Chart
Monthly Chart II
- Rising wedge formation of the entire rally from March 2009 which is bearish.
- The entire rise since May 2009 has been on falling volumes.
- The target of the rising wedge is 2356.
- Nifty has closed below the wedge for the second month consecutively.
- Oscillators have been in negative divergence since some time and continue to show weakness.
- The Nifty has been in a range of around 850 points since September 2009. Break below this range at 4538 will give an immediate target of 3676.
June was a positive month on rising volumes and ended close to the upper part of the range. The candle was also a higher high higher low raising hopes of more strength. Maintaining above 5295 will give strength to attempt 5400-5550.
Targets of the rising wedge given here may take a long time to be achieved as short term action will be guided by shorter term charts.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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