Reigning The Nifty - 3rd February, 2010

 Daily Chart

Half Hourly Chart

 

• An outside day with a higher high and lower low.The candle is also a bearish engulfing one which makes it all the more bearish.
• Close below  the 23.6 % fibo level of the fall from 5131 for the fourth day.
• The red trendline finally succumbed to bear pressure.
• Daily oscillators are oversold . Half hourly oscillators are weakening and stochastics has reached oversold zone.
• Bear flag formation on half  hourly charts.

We got a correction in the pullback as anticipated. However closing below the 61.8% fibo level of the rise till 4951 increases the possibility of the 4766  low being violated. The  bear flag formation supports this view.

Resistances and Supports marked on charts.

Till the low of 4766 is violated chances of the upmove continuing are open.


Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com