Half Hourly Chart
- A higher high higher low maintained for the sixth week but on very low volumes.
- Doji showing indecision the long lower shadow shows support at lows.
- Macd and Rsi 14 continue to be in negative divergence.Macd has moved towards it's signal line and about to give a buy after giving a sell on week ending 30th October 2009.
- Close exactly at high made on line charts on the 6th of Jan .
- Rsi and stochastics in overbought region and stochastics still in negative divergence.
Half Hourly Charts
- Moving averages bullishly aligned.
- Oscillators continue to show negative divergence.
Nifty has continued to move up but on lower volumes , deteriorating breadth and negative divergences , all calling for caution. Trend following indicators are strong and price patterns too call for a continued uptrend. A classic breakout from the downtrendline joining January 2008 and Januray 2010 highs, a retest of the trendline and continuing to move up supports this view. However deterioration of market internals calls for caution.
Strategy of remaining neutral saved one from whipsaws. Remain neutral till a decisive break above the high of 5310.If one is still long then stops should be at 5250 to protect profits. Crucial support for longs is at 5187.
Happy Trading !!