Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, November 7, 2009

Reigning The Nifty - Week ended 6th November 2009

 Weekly Chart


The week finally ended favouring the bulls as buying support came in at 4530 and closed above the inverse head and shoulder neckline band of 4650-4700. However the lower top lower bottom since last week continues. Oscillators have started moving up after moving below July lows.

A well formed rising wedge is now seen. Just to refresh memory,  Wedges are longer-term patterns, often witnessed on weekly charts. They can be powerful continuation or reversal patterns. A strong preceding trend makes a stronger signal.A rising wedge is formed by higher highs and higher lows. A bearish signal, the pattern is normally a continuation signal in a down-trend but acts as a reversal signal when encountered in an up-trend.(courtesy Incredible Charts)

Support is at 4592. So long as this support is not broken, we have a sideways to up market.

Happy Trading !!

Lakshmi Ramachandran


Venky said...

Dear Ms. Lakshmi,

You had mentioned some posts before that all rallies from now on need to be sold. Also I could not make out from the rising wedge definition as to whether it is a reversal pattern. Your thoughts would be highly appreciated.



Lakshmi Ramachandran said...

This is a rising wedge and there was a strong uptrend till now so it is a bearish pattern. The selling on rallies is still valid but if the support of 4592 holds then it is sideways or up.So sell rallies but with a stop loss. Markets are never predictable and you have to change your stance as per price movement

vvvvv said...

Where should one put stop loss as per your advice : 'So sell rallies but with a stop loss.'

Lakshmi Ramachandran said...

wait for analysis for 9th November