- Weekly lower high and lower low continued for the second week .
- The candle for the week is a bullish candle showing good support at lower levels.
- Volumes were high and breadth mildly positive.
- Rsi 14 and Macd still showing strength but stochastics is moving down from overbought levels.
- 5167 is support on uptrendline from march 2009 lows , coinciding with the week's low of 5161, making it a significant support.
Daily Chart I
Daily Chart II
- Closed above the range of 5160-5279 making a higher low for the fourth consecutive day .
- The close was above all short term demas which is bullish., and barring the 5 and 10 demas all are bullishly aligned.
- Oscillators are showing strength once again, moving abup above the 50 level, though Macd is in sell but shown an uptick.
- 5264 is good support coinciding with the 20 dema at 5262.
- 5200 is good support on line charts. So a close below 5200 would be bearish.
Half Hourly Chart
- Half hourly line charts close above the 61.8% level, opening the possibility of testing the 100% level at 5385.
- Oscillators are showing strength.
- Emas are all bullishly aligned once again.
- Rising wedge formation on the rise from 5161.
Thus , till the earlier high of 5400 or the upper trendline of the channel is crossed, Nifty could move lower. However , the Nifty could continue to move up till the low of 5160 is held.In short, expect whipsaws till the range is broken.
Support at 5265-5160 and Resistance at 5340-5350-5400.Place stops on short/long positions accordingly.
Happy Trading !!