Last week I had mentioned that closing above 2812 would be bullish. The level was crossed on the first day of the week and there was no looking back. The nifty took a shot at the resistance of 3123 , which I had mentioned as the resistance offered by the down trendline from January 2008 highs, and closed almost at that level. All weekly oscillators are trading above their corresponding down trendline. This action is definitely bullish. This trendline is at 3070 for the coming week. So the close for next week should be above 3070 for further upsides.
The weeks action led to a breakout from the upper trendline of the triangle which now offers support at 3005. The height of the triangle is 740 points 3240-2500=740. Breakout point is 3000 . So target is 3000+ 740= 3740 .
The close of the week has also scaled above the trendline joining lows of January '08 and March'08 , which had been strong resistance since week ended 17th October '08. This trendline offers support at 2780 for the week.
If the nifty trades above the high of 3123 then next resistances are at 3147 and 3240 the previous two highs forming the upper trendline of the triangle. Fibonacci levels of fall from 4650 offer resistance at , 38.2%---3168, 50%--3450 and 61.8%--3740. The triangle target is 3740 which coincides with 61.8% retracement level. The 38.2 % level of the entire fall from 6357 is at 3830. So the 3740--3830 levels may be acievable but going beyond that level may be difficult.
Look to trade long if nifty does not break the 3070 levels with stop loss at 3000.
Happy Trading !!