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
www.vipreetsafetrading.com
4 comments:
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.
Thanks
Venkat
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
Madam,
Where should one put stop loss as per your advice : 'So sell rallies but with a stop loss.'
wait for analysis for 9th November
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