- Weekly charts show a higher high and higher low changing the bias to 'up' .
- Volumes were average and breadth marginally positive.
- Head and shoulder with neckline at 4650 still valid with target of 7050.
- Oscillators moving up as anticipated last week from 'turning points'.
- Higher high and higher low candle following up on the breakout from the neckline of the inverse head and shoulders.
- Volumes were average and breadth negative.
- Oscillators are moving up showing more upside possible.Obv has moved strongly above it's April 2010 peaks.
Half Hourly Chart
- Despite positive action the close was within the rising wedge.
- All emas bullishly aligned.
- Oscillators showing negative divergence.
As anticipated in the weekly analysis of 31st May, Nifty moved up from the 'turning points' shown on the oscillators. The weekly bias has changed from down to up with a higher low higher high candle. Holding the trendline from November lows is another bullish indication. Time to visit the Inverse Head and Shoulder pattern formed since June 2008 with it's neckline at 4650. Nifty has tested the neckline twice since breakout in August 2009. This makes it a very strong support and one can be long for the long term till this neckline is violated.
Indications of bullishness are resurfacing. In the very short term the rising wedge and negative divergence may lead to a pullback . The fact that world markets are in a tailspin alert us to be more biased towards risk management than earning profits. So trade properly hedged.
The bias has turned positive and one can trade long with a stop loss of 4950.
Happy Trading !!