Half Hourly Chart Showing Divergence
I was "cautiously optimistic" yesterday and continue to be so. This inspite of having an up day.
Bullish Case :
- Day's close above the green channel shown on the daily charts.
- Oscillators RSI and Stochastics overbought but showing strength.
- Doji pattern of previous day nullified as a higher low was made yesterday.
- All corrections are only intra day indicating good buying support.
- Divergence in daily Macd intact.
- Resisted at 200dema second day in a row.
- Rising wedge formation continues to threaten.
- Divergences on half hourly charts intact.
- As per past history we are due for a correction (up legs have consumed just 5 to 6 weeks mentioned in my weekly write up)
- Good yo-yo during the day indicating confusion about direction of trend.
Next resistance is 50% retracement level at 3450 of fall from 4650. 200dema is at 3395.
Supports of rising wedge are at 3335-3390 on half hourly charts. On daily charts supports are at 3378 (Green channel upper trendline ) and 3323 (rising wedge). Fibonacci and other important supports are marked on the chart.
Trade cautiously with appropriate stop losses.
Happy Trading !!