- Uptrendline not violated.
- Oscillators not showing any weakness.
- The correction since 12th June from 4693 has maintained above the 50% retracement level of fall from January 2008 .
- The Golden Cross of 20-50-200 is intact.
- This week's candle clearly shows support at lower levels.
- This week we have a higher bottom higher top candle.
- Support on uptrendline is at 4472 for the week.
- The flag formation shown in green conveys consolidation before the upmove resumes.
View : Cautiously optimistic
- Oscillators are showing signs of strengthening .
- All moving averages are once again bullishly aligned.
- The nifty has closed above the uptrendline after remaining below it for the last three trading sessions.
- Though today's candle is a bullish engulfing candle , it is not an impressive one.
- Given a breakout from downtrending line shown as red dotted line.
- Rising wedge formation--a bearish formation-- in the last 10 days of trade, with falling volumes which is characteristic of the pattern. The appearance of this formation reiterates the view that this is the forming of the right shoulder of the Head and Shoulders pattern.
Intra Day Charts
- All moving averages are bullishly aligned.
- All oscillators positive.
- Below uptrendline from 2539.
The weekly has not shown any signs of weakening . However, the daily and intra day charts show a sideways listless movement conveying market players are not ready to take positions before the budget. The Advance Decline ratio too is neutral. Till there is a rise above 4440 on good volumes and momentum I would be neutral on the market.
I would continue my positional longs with a stop loss of 4143.
Happy Trading !!