Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Thursday, December 16, 2010

Reigning The Nifty - 16th December, 2010




 Daily Chart





Daily Line Chart





The breakout on the line charts did not lead to bullishness. Looks like a retest of the downtrendline is in the offing. Support on this trendline is at 5860.The candle charts show a lower high lower low candle which proved the breakout above the 38.2% fibo level of the fall from 6338-5690 and 61.8% fibo of fall from 6070-5721,  false.


Half Hourly Chart



The Half Hourly charts show an equilateral triangle forming making it all the more difficult  to  predict the short term direction.The triangle has resistance at 5934-5918  and support at 5734-37.The fall from 5954 has taken support by making a bullish hammer exactly at the 38.2% fibo level as shown on the chart. The hammer has been confirmed by a bullish candle in the last half hour.


Weekly support on uptrendline from March 2009 lows is at 5810. The 61.8% fibo level of rise from 5721 to 5954 is also at 5810 making it a strong and important support. Daily 5,10,20 & 50 dema are all in bearish alignment and are between 5901-5950 creating resistance.  5963 is the resistance from the downtrendline drawn from 6338 on daily charts.A close above 5950-5965  is necessary  if the uptrend is to continue.

Supports at   5865-5838-5810-5734.  Resistance is at  5914-5934-5950-5965.



Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

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