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Wednesday, October 7, 2009

Reigning The Nifty - 7th October, 2009

Weakness prevails with a lower high lower low candle. Strength exhibited by  having found support at the lows. Or is it just that the intraday oscillators had reached oversold zones which led to the smart recovery in the second half of the trading session? Tomorrows action  will help us get the answers.

 Daily Chart

 The support of 4904 held . If this gives way then the uptrendline from March lows, which has support at 4895,  will be under threat . A faster retracement  of the entire fall  will lead to higher levels.
Daily oscillators have not moved down much from the overbought region and this is a sign of strength.

Half Hourly Chart

 The recovery just fell short of the 61.8% retracement level of the fall. The 200ema  provided good support. All the moving averages barring the 5 ema and 200ema are bearishly aligned.The bounce has some more upside as the oscillators are in neutral territory after moving up from oversold zone.

The startegy of remaining neutral continues till we have more clarity about the direction.

Happy Trading !!

Lakshmi Ramachandran

1 comment:

Anonymous said...

Thank you for sharing.