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Friday, December 21, 2012

Reigning The Bank Nifty 20th December 2012



Daily Chart
 

Half Hourly Chart
 

 
Bank Nifty made a higher high at 12572 resisting at the resistance line of the rising wedge once agin.A doji was formed which shows lack of conviction to continuing the upmove.The close was also below the resistance line of the red flag shown on daily charts.

Half hourly charts too show a sideways move with support now at 12290-12338 intraday.Other fibonacci supports are marked.

Bank Nifty has been within a rising wedge. Rising wedges have a  series of higher highs and higher lows which keeps the trend inherently bullish.However, the loss of upside momentum on each successive high gives the pattern its bearish bias.Bullish candles on huge volumes breaking above the resistance line are necessary to show conviction in the upmove.

The bias remains up but clearly the  momentum on the upmove is missing.These are signs that the markets may be topping.Keep booking profits on the way up and be ready for a correction by hedging your long positions.


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Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com
Disclaimer
All the calls made in this section are based on my judgment and the information available at the particular point of time. Adequate precaution has been taken while writing the analysis. However, no responsibility is taken for the losses or gains made through the analysis, either legally or otherwise. Readers are advised that acting on the analysis is at their own risk. Stock Market trading involves risk and is a high risk & high return business and I do not accept any financial and/or legal responsibility arising from the use of the information

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