Daily Chart
Inside day pattern was formed. In candlestick language it is a bullish
harami.This pattern shows indecision and in this case could mean an
indecision to continue with the recent downtrend from 5629.
The longer the black candle and the white candle, the more forceful the
reversal.The higher the white candle closes up on the black candle, the
more convincing that a reversal has occurred despite the size of the
white candle.Today;s candle was however a little small for this. However
the pattern is powerful and the rally may have resumed from
yetserday's low at 5268.
Rsi14 has turned above the 50 mark and stochastics is about to give a
buy in the oversold region.The 50 and 200 dema have given a buy since
two days.
The fall is well channeled with resistance at 5351 and support at
5163.This support coincides with the support from the downtrending
channel from which Nifty broke out recently. Test of the trendline after
breakout is very classic and a confirmation of bullishness if the trendline support holds.So holding
the support at 5163 is very important for the ongoing rally. The green
neckline support is at 5232.
follow me on twitter http://twitter.com/#!/lucksr
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
No comments:
Post a Comment