Reigning The Nifty - Does the Pennant Target Still Hold ?

Half Hourly Chart 

Breakout from Pennants normally lead to a similar and sharp move in the same direction as the Pole.However, rarely a pullback is seen close to the breakout point.

Nifty seems to be seeing such a pullback. The target of the blue triangle which formed is at 10545.Strong resistance from the 20 dema and 50 dema is at 10555.High possibility that the downtrend continue after hitting these resistances.


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Lakshmi Ramachandran

Reigning The Nifty - Target 9500

A  pennant is a continuation pattern  which forms when the price rallies/falls sharply, then moves sideways or slightly to the downside/upside. This sideways movement typically takes the form of a small triangle (pennant). The sideways period is often followed by another sharp rise/fall.


The Nifty just broke down from a Pennant - marked in red.

Half Hourly Chart 

 The  momentum seen during the forming of the flag pole -marked in green-- could continue once the pattern completes. Therefore expect a move down for the Nifty of a measure the size of the flag pole from the point of breakout.

Half Hourly Chart 

Strong support at 9500

The pennant target measures to 9675 which is also strong support area marked in red dotted line. The 50% fibo support of move from 7894 to 11171 is at 9511. Support on rising wedge on monthly charts, shown in my last post, is at 9500. 

 Monthly Chart

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Lakshmi Ramachandran

Reigning The Nifty

Monthly Chart 

The target predicted was reached and correction set in as always happens once a technical target is reached.The supports are at 10250-10033-9500-8060.

Fibonacci level supports are at 23.6%  at 10146 ,   38.2% at 9511   and  50% at 9000.

With fibonacci support at 10146 and the last minor support at 10033 this level should hold for the time being.


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Happy Trading !!
Lakshmi Ramachandran