Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
follow me on twitter!/lucksr

Tuesday, June 16, 2009

Reigning The Nifty - 17th , 2009

Nifty Half Hourly Chart

Nifty Daily Chart

The RSI 14 has broken the low made on 9th June. As momentum action precedes price action we may expect 4507 to break tomorrow. Let us see whether the low of 9th June at 4365 holds or gives way.

Well, even the panic low in the morning did not break 4365. In fact, like I thought," Very minor positive divergences are seen on half hourly charts. We may get a minor bounce before continuing the correction.The fall has been sharp so we may get either a bounce or sideways movement after hitting 4450 levels", we had a bounce after making a early morning low of 4406.

However inspite of the bounce , the short term seems to be weak. The stochastics on daily charts has broken it's 9th June lows which is 4365 on the Nifty. The Nifty still trades below the midline of the channel we have been moving in since 2539. This trendline is now resistance at 4642 .On half hourly charts the lower trendline of rising wedge is proving strong resistance.

The silver lining in the cloud is that we have closed above the 38.2% of the fall till 4406. Also the rising wedge on daily time frame is still not broken. Closing below 4538 tomorrow will violate the rising wedge.

The lower trendline of the channel has support at 4255 for tomorrow.

Happy Trading !!

Lakshmi Ramachandran


Sujatha said...

9th June low is 4365.10 right mam? but it has mentioned 3365????

Please correct if i am right

Thanks in advance

Lakshmi Ramachandran said...

yes it is 4365. but where is the error? cldnt locate. tell me so i could correct it

Sujatha said...

It's n 3rd para 2nd line

Lakshmi Ramachandran said...

thanks . rectified

Bose said...

Dear Lakshmi,

In the daily charts, the rising wedge target is 600 points from the point of breakdown. Can you please clarify what is the high point and low point of the wedge you have considered.

Unknown said...

Dear Lakshmi

In the daily charts, you have mentioned that the wedge target is 600 points. Can you please clarify what is the top point and low point of the wedge that you have considered.

I am getting 400+ points.


Lakshmi Ramachandran said...

i have shown the high point and low point which measures the target.4693 & 4092 respectively

madhusudan said...

"jaipurbulls, very short term trend is down but I am not comfortable going short as besides very early signals the uptrend seems to be intact

June 14, 2009 4:58 PM"
Are you still maintaining the same view, ma'm?

Lakshmi Ramachandran said...

Yes.Though now we have more proof that the uptrend is under threat.