Is the the neck firm once again ?
- Weekly Oscillators moved down from overbought levels but just that much to show the downmove as a corrective move.
- Daily Oscillators are bullish with the RSI14 and Macd having taken support at levels held since November 2008, and the Macd giving a buy once again. The stochastics has reached overbought levels but going strong.The oscillators have crossed their earlier peaks showing way to the Nifty to do the same.
- Intraday half hourly oscillators have shown mild bearish divergences.
- Weekly Long and Short term moving averages bullishly aligned.
- All moving averages are bullishly aligned excepting the 10 and 20 demas which however are moving up and are also bullishly aligned with the 50 dema.
- Bullish alignment of moving averages on half hourly charts.
- The Nifty has moved decisively above the bearish Head and Shoulder pattern indicating a flase breakout below neckline. Moving above 4693 which is the head, will nullify the bearishness of this pattern.
- Breakout from flag formation on weekly charts indicating fall from 4693 was consolidation.
- Falling wedge formed on weekly charts which is bullish.
- Downward sloping channel breakout on daily charts (I had shown it as a flag formation on weekly charts on the 13th July post).
- Falling wedge on half hourly charts.
- Advance Declines improved considerably all of last week.
- Put Call ratios is at 1.16 indicating market is overly bearish.
- 4402 61.8% retracement of fall till 3918
- 4480 previous top
- 4590 falling wedge target --shown on half hourly chart
- 4693 top of rise from 2539
- 4812 channel target shown on daily charts.
I would prefer to be light in my positions and wait for breakout from the top of 4693 or from the falling wedge on weekly charts to get 100% bullish, and look for a break of the neckline once again to be bearish.
Happy Trading !!