Reigning The Nifty 12th December 2012

Daily Chart

Daily Chart II

Half Hourly Chart

  Nifty took support and closed above the rising wedge resistance line shown on Daily Chart II.An Outside Day pattern was formed on daily charts which could be signalling a reversal or deceleration of the current trend having occured  at the resistance of April 2011 top.

An outside day is when the day's candle completely encompasses the previous day's candle. It must have a higher high  and a lower low than the previous day.The big range of the outside day made today encompasses the range of the last two trading sessions.Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels supports this view.

 

The half hourly chart shows the  Nifty having broken down from a rising wedge.However, a morning star pattern has been formed at today's lows which is also the 23.6% fibo level, shown on the chart, indicating the  upmove from 5865 may continue.The pullback  should find resistance at 5913 to 5928  intraday at the support line of the rising wedge.With the daily charts showing signs of early bearishness the resistance may hold.If gives in 5965 could be tested. A cross above 5965 is necessary for further upsides.

 

A daily close below the Outside Day's low, which is 5865, will confirm further bearishness to come.5839 is important support and a fall below this will be an alert to the bulls.

Supports are marked on half hourly charts.

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Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com