Daily Chart
Half Hourly Chart
Lower bottom lower top continued for the second day running. Also the recent support of 4932 was violated. Nifty found support around the 50% retracement levels of rise from 4783 to 5036, at 4904. Half hourly oscillators are showing strength after reaching oversold levels.Whereas the daily oscillators have moved down from overbought levels with the negative divergences intact.
Still at crossroads and we will have to wait to see if this is another consolidation pattern forming as shown in half hourly charts. Break below the downtrendline of this pattern will be second confirmation of a bigger fall, first being the violation of 4932. the final confirmation would be when the uptrendline from March lows is broken.
At close, the Nifty retraced exactly 61.8% of fall from 5036 to 4904. Trading above today's close will open possibilities of a breakout from the consolidation pattern.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
1 comment:
It's interesting that NIFTY has such inherent strength to close reasonably strong, considering other regional Asian markets very battered.
This is indeed a gift to bears, if it breaks 4930 at the close on Monday then I am turning short with a stop at the recent high.
Thanks for your charts!
Lee
Leeds,UK
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