Weekly Chart I
Weekly Chart II
- Uptrendline from March 2009 lows broken.
- Oscillators moving down after showing negative divergence .
- Breadth remained negative throughout the week.
- Moving Averages bullishly aligned.
- Uptrendline from July 2009 lows held.
- Volumes low for the week.
- Today's fall was swift but took support in the very first hour to rally and recover almost the entire fall from 5094.
- 5,10 & 20 emas are bearishly aligned and the Nifty continues to trade below the 50 ema.
- The fall has been on negative breadth and very high volumes.
- Oscillators are weak and supporting the fall. The oversold region has not been reached indicating some more fall possible.
Half Hourly Chart
- All emas bearishly aligned making th short term trend bearish.
- All oscillators have moved up from the oversold region but not showing strength.
- Support taken above the bottom made at 4945 in the month of December.
Taking partial profits on the 18th of January locked in good profits and the stop loss of 5169 on the remaining positions got us out at reasonably good profits. The short term trend has turned bearish and the short term strategy should be to sell on rallies till the 5175 level is crossed with strength.
Happy Trading !!