Reigning The Nifty 12th December 2011

Nifty Weekly Chart

Friday was a day of volatility as can be seen in the intraday chart below. The result was a long legged doji. This candlestick has long upper and lower shadows with the Doji in the middle of the day's trading range, clearly reflecting the indecision of traders.

The fall which started in November 2010 is more than a year old now and the bears seem to have been hesitant about the downmove till now allowing bulls to win every now and then making the fall slow.The weekly chart above shows an established range between 4639-5400 since more than three months.Sooner or later this range should be broken to give a good move of a minimum of 750 points.

Weekly Chart Showing positive divergence which raises hopes of a bullish breakout.

Ranges are difficult to trade unless you are adept at it.The short term is always difficult to trade and leaves one an emotional wreck.I prefer to make the most of falls and pick my favourites slowly but surely.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com