Daily Chart II
The weekly candle formed a bullish hammer at good support. The daily charts show support taken once again at the 5348 levels which has been broken twice, but only briefly. Positive divergences on oscillators, shown in Chart II, encourage the bullish view. Breakout from the short term trendline joining tops from 5605 top on 13th May promises some pullback.Volumes on the last two days were encouraging.
However this could be the right shoulder of a bearish head and shoulder pattern forming. The 50 and 200 dema too are bearishly aligned for the second time since the fall from 6338. So one needs to be cautious till more evidence of bullishness emerges.
Half Hourly Chart
Half Hourly Chart II
Half hourly charts show clearly that the right shoulder of the head and shoulder bearish pattern may be forming.Chances of targetting 5700 are good , a level which should prove strong resistance.
Mild bullishness is creeping in but it is difficult and too early to pinpoint whether it is a reversal or just a pullback. Being cautiously optimistic till the neckline breaks will be a prudent strategy.
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