Today's trading was similar to yesterday, opening low and then recovering thru the day to close almost at the high. Point to note was a higher high and a higher low which makes the low of 5480 the important low to hold for any upside.The range of 5605-5480 needs to be broken to get momentum. Break above 5570 which will lead to a break out from the short term downtrendline and which was also today's high would be the first sign of bullishness.If fails,then a retest/break of 5480 will be imminent.
Half Hourly Chart
Half hourly charts show a struggle to move above the 5605 levels. The right shoulder which seems to be forming of an inverse head and shoulder pattern with the neckline at 5605, got restricted to 5570 levels today and finally closed below the 38.2% fibo (5565) level of the fall from 5944 to 5330 and the 61.8% fibo level of fall from 5605 to 5480.
Nifty needs to break from the 5605 - 5480 range to get momentum. The break will give a 125 point move in the immediate short term. Break of the neckline 5605 will give a target of 5875 . If breaks 5480 then the down trend will resume.
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