Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Sunday, June 19, 2011

Reigning The Bank Nifty Weekly Update - 18th June, 2011

Weekly Chart

Weekly Chart II

Negatives :

  • Sideways trading with negative bias continued this week too.
  • A lower high and lower low candle with the close below last week's close.
  • The fall from 11978 to 10340 was able to recover just about 40%.
  • Volumes extremely low and breadth negative.
  • Trade below the uptrendline from March 2009 for the fifth week.

Positives :

  • Low of 10340 made on week ended 27th May held.
  • Low of 10017 made on  11th Feb still not violated keeping the medium term trend UP.
  • 100 wema which is a  good support during uptrends is still unviolated.

Chart II shows trendline from March 2009 low joining las week's low held. Support on this trendline is at 10591. A break below 10591 will find support at 10340-10017.Till the intermediate low of 10017 is held we may assume the fall to be a correction of the March 2009 rally. On the other hand  till some basing activity is seen one cannot assume the current downtrend over.Crossroads.

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Happy Trading !!
Lakshmi Ramachandran

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