Weekly Chart
Daily Chart
This week's candle made an "Inside Pattern" making the high and low of the precious week at 6069 and 5721 points of breakout for further direction. The daily has an "outside pattern" which signals that a high probability exists that the market will move in the direction of the close , which, in Nifty's case, is up.Half hourly charts show a breakout on the upside from an equilteral triangle formation More pointers to an upmove. Analysing the weekly and daily charts further,
Positives are,
low of 5721 was held,
close was above the 61.8% retracement level of fall from 6070 to 5721,
the uptrendline from March 2009 was held --this was the third attack on the line in the last 4 weeks making it an important indicator to define weakness/strength,
the weekly stochastics which is a good trend reversal indicator on the weekly as discussed before, continues to inch up and Rsi 14 has turned up above the 50 level.
friday's candle shows more bull power than bear power.
breakout on the upside from the equilateral triangle.
Negatives are,
lacklustre trading in a very narrow range on extremely low volumes,
macd continues to be in a sell.
More positives than negatives. Higher low at 5721 and then at 5855 on Friday points to a possibility of some pullback.One can be cautiously optimistic so long as the low of 5690 is held. First step to more bullishness , cross of 5956. Second step, cross of 6070.
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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
