Weekly Chart II
Half Hourly Chart
- A bullish breakout from the various patterns--ascending triangle,double bottom, falling wedge -- I have been discussing since a few weeks.
- The breakout was with two consecutive gaps and till these gaps remain unvisited bullishness will prevail.
- A higher high higher low has been maintained since the bottom of 5177 on daily charts.Till the previous low of 5348 breaks, Nifty can be considered to be in an uptrend.
- The daily chart also shows highest volumes on the candle at the 5177 lows.This may be capitulation which proves to be so till date.
- The fall from 6338 has held the 61.8% retracement level of the rise from 4675 lows on a closing basis.
- The Nifty has closed above the 50 and 200 dema and the 5,10 and 20 dema are all bullishly aligned.
- The daily oscillators are all showing strength.Stochastics and Rsi14 have moved above 50 level and Macd above zero in buy mode.
- The move from low of 5177 is a 5 legged triangle which has broken on the upside with a target of 6000 as shown on half hourly charts.
- Volumes have not supported the breakout as shown in weekly chart II.
- Weekly chart shows the green bear flag being formed once again. This typically forms in corrective moves.
- The red neckline on half hourly charts could be crossed only intraday. Resistance is now at 5660.
Till the top of 6338 is crossed, all bullish signals should be followed but with necesssary risk management.
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