Thought of giving a wider look at the price movement from the 2008 fall. The rise from October 2008 clearly is a corrective one having taken 2 years to retrace the level of 6338 whereas the fall took just one year. This indicates more fall to come. The 5300 levels is good support failing which 4650 levels should provide good support.
Weekly Chart II
This week's candle failed to confirm the bullishness of last week's hammer.The uptrendline from March 2009 lows proved strong resistance. This week's candle has a long upper shadow showing selling at higher levels.Levels to watch out for next week will be 5620 and 5373.Above 5620 will test 5800 and below 5373, which is the support of the important trendline joining lows since August 2009, will lead to some panic selling to sub 5000 levels.
Supports are at 5330-5274 (100wema discussed last week http://vipreetinvestments.blogspot.com/2011/05/reigning-nifty-weekly-update-28th-may.html) - 5177.
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