Daily Chart I
Daily Chart II
Half Hourly Chart
- Broken trendline joining lows since 4675 making a lower high lower low after 9 weeks.
- Oscillators moving down after negative divergence.
- Support at 5121 on trendline joining March 2009 and February 2010 lows.
- Fall was on low volumes.
- Fall continued but found support at previous low of 5235 on negative breadth but on low volumes.
- Candle formed has long lower shadow indicating support at lower levels.
- Stochastics is in oversold zone and Rsi 14 and OBV have broken all supports made during the rally from 4675.
- 50 dema support at 5166 which coincides with support at trendline joining Jan 2008 and Jan 2010 highs.
Half Hourly Charts
- Decending triangle formation indicating support at 5235 may be violated.
- Oscillators moving up from oversold zone indicating the pullback may test the upper trendline of the decending triangle.
- The pullback has started forming a bear flag.
The rally from 4675 is declared over.The trend will be declared down only if 4675 is broken. However, weight of evidence supports a correction till 5400 is crossed. 5122 is very strong support as it is the 38.2% fibo level of rise from 4675 to 5400 and is weekly support on trendline joining March 2009 and February 2010 lows.
Daily stochastics at oversold zone and intra day oscillators moving up from oversold zone support a pullback.Long lower shadow at 5235 support gives weight to this view.
Sell on rallies strategy continues.
Happy Trading !!