Thursday, August 27, 2009
Reigning The Nifty - 28th August, 2009
Nifty was positive today and failed to give in to the weakness of the short term rising wedge shown yesterday. However , the session was on low volumes keeping in line with the charateristic of the rising wedge forming since mid June. I have redrawn the wedge from June highs and July lows as it seems more appropriate. The resistance and support lines remain the same.
Negative divergence on intraday charts persist. Daily stochastics is in overbought region and is starting to turn down.The uppertrendline of the rising wedge is threatening at 4750. If taken out then we have a very bullish market. Else the bearishness of the rising wedge will give a slide of 800 points. Advance decline line is very encouraging.
For tomorrow staying above todays high of 4708 can see the Nifty testing the 4731-4750 levels. Staying below 4708 can take it down to 4650 - 4625. Levels are marked on the charts.
Happy Trading !!