Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, March 14, 2009

Weekly Nifty

Weekly Nifty Showing Positive Divergence

Nifty Weekly Chart

The weekly nifty chart have developed positive divergence in the RSI(14). The Stochastic too has shown a slight divergence , though not as pronounced as in the RSI. This may see an uptrend for sometime. We already have the bullish harami range break on the daily charts to give more weightage to this expected upmove.

This week's candle has taken support exactly on the trendline drawn from October lows to the low of 2539 made last week, making this trendline an important support going forward. The past two weeks candles have formed an "Inside Pattern". So we could look for direction on the break of the high at 2764 and low at 2539.

Supports and resistance for the week have been marked on the chart above.

Happy Trading !!

Lakshmi Ramachandran

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