Reigning The Nifty - 4th September, 2009

 Half Hourly Chart

 

Half Hourly Chart with Falling Wedge and Triangle

Daily Chart

An exhausting session of trade keeping the bulls and bears on tenterhooks.

Bearish Case

• The long uppershadow of today's candle
• Close below yesterday's close 
• The OBV has once again broken below the uptrendline from March lows.
• Daily Macd given a sell
• Moving averages on half hourly charts are bearishly aligned
• Nifty closed below the 200 period EMA on half hourly charts
• Oscillators on half hourly charts are weak

 Bullish Case

• Daily RSI 14 above 50 levels
• Daily moving averages bullishly aligned
• The fall has been on progressively lower volumes
• The pattern formed on daily charts during this fall is a falling wedge 

The triangle breakout shown on half hourly charts has a target of 4530.The lower trendline of the falling wedge has support at 4528 on daily charts.This should be good support .A breakout from the falling wedge at 4609 should lead to upsides. But before turning bullish 4650 needs to be overcome which has proved strong resistance for the past  two days. A weekly closing above 4450 will keep the hopes of a rebound alive as it is the weekly support level of uptrendline from March lows.
Supports and Resistance levels are marked on the charts.




Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com