Weekly Chart
A weekly doji candle at resistance indicates a possible reversal of trend which needs to be confirmed by the coming week's candle.If trading manages to remain above the doji's high then the alarm may be false and the Bank Nifty may move towards it's next resistance of 5944.The OBV failing to cross it's February peak with price also alerts one to be cautious on longs.Oscillators though are showing strength and more place for the upmove to continue.
Daily Chart
Nifty crossed the high made on 21st September but failed to cross the August 2011 peak at 5944 which is immediate resistance. The close was the highest close for the year and above 5700 which was heartening.OBV on daily charts is moving higher with price but oscillators Rsi14 and Macd are in negative divergence having failed to reach their February 2012 peaks which calls for caution on longs.
Since the trend is up one may continue longs with partial booking of profits on the way up. Fresh longs to be taken only on dips.
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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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