Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, April 25, 2011

Reigning the Bank Nifty 25th April 2011



 Weekly Chart




 Daily Chart




The Bank Nifty is moving up in a channel . The present yo-yo from the beginning of this month has been in the shape of a megaphone which could also  be the forming of the right shoulder of an inverse head and shoulders pattern with the neckline shown in red. Due to the megaphone shape the point of breakout seems to be going up slightly everytime the resistance line resists.Breakout points are marked on the charts.

Amongst the trend folowing indicators, EMAs  are all bullishly aligned on the weekly as well as the daily charts.On weekly charts the Macd is in buy and has moved above the zero line. The higher high higher low is intact till 11482 is broken. The Rsi14 and stochastics are showing strength above the 50 level.This indicates an uptrend is in place.

On daily charts though, oscillators showing falling momentum and a negative divergence.The Macd is in sell but above the zero line and has turned up  to give a buy.The stochastics and Rsi14 have started moving up regaining strength above the 50 line.  This indicates the sideways  correction  since the beginning of this month may be getting over.On Line charts the neckline of the  inverse head and shoulders has been broken out.

Supports are at  11520-482-337. Resistance at  11950-12000-12200.

Longs can be initiated with proper risk management in place as per one's risk profile.




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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

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