Reigning The Nifty - Monthly & Weekly Update 3rd July 2011

Monthly Chart

The monthly charts made a lower high lower low candle. The long lower shadow shows good recovery efforts. the lower trendline of the blue channel held well though violated for a few days. The 12 month ema which has been a good indicator of the trend has been overcome once again after breaking it last month.Whipsaws around this ema once again as happened in the 2008 correction. So till it is crossed decisively - huge bull candle on good volumes , a close above the lower high of 5944 - bear strength cannot be undermined.

Scaling 5750-5944 should bring in some strength else expect the downmove to continue.

Weekly Chart

A good followup to last week's bullish candle on good volumes.The bias was changed to positive with a higher high higher low candle.The previous minor peak at 5605 has also been scaled which is the first confirmation of reversal. Confirmation of the potential double bottom at 5177 - 5196 on scaling of 5944 pending.

The downtrendline from 6338 however proved resistance once again.Resistance on this line at 5685 for the week.Other resistances at 5725-5840.

Till the lower high of 5944 is scaled catious on longs.


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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com