Daily Chart
Half Hourly Chart
Happy Trading !!Today was a down day again and we reached the first pattern-rising wedge -target of 3916. The candle formed on daily charts shows support at lows and is a badly formed hammer. So though we cannot term it as a hammer yet it has qualities like a small real body, long lower shadow and a close towards the high of the day, which would goad us to anticipate an upmove.
The intraday oscillators are oversold and beginning to move up. The ROC12 has given a positive divergence and Macd has give a buy signal. On daily charts, the stochastics has given a buy in the oversold region. Macd and Rsi 14 have managed to remain above the supports (shown in charts of post for 13th July). All these points towards a pullback.
However one must remeber that we are in a downtrend. The intraday moving averages are all bearishly aligned and the short term moving averages on daily charts are also bearishly aligned. Till these averages get bullishly aligned upmoves should be viewed with suspicion.
Expect a pullback on breakout from the falling wedge shown on intraday charts. targets will be set after breakout. I would lighten shorts and wait for an oppurtunity to short at higher levels.
In case the downmove continues we could expect 3700-3600. For exact targets refer charts.
The intraday oscillators are oversold and beginning to move up. The ROC12 has given a positive divergence and Macd has give a buy signal. On daily charts, the stochastics has given a buy in the oversold region. Macd and Rsi 14 have managed to remain above the supports (shown in charts of post for 13th July). All these points towards a pullback.
However one must remeber that we are in a downtrend. The intraday moving averages are all bearishly aligned and the short term moving averages on daily charts are also bearishly aligned. Till these averages get bullishly aligned upmoves should be viewed with suspicion.
Expect a pullback on breakout from the falling wedge shown on intraday charts. targets will be set after breakout. I would lighten shorts and wait for an oppurtunity to short at higher levels.
In case the downmove continues we could expect 3700-3600. For exact targets refer charts.
Lakshmi Ramachandran
www.vipreetsafetrading.com
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