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Wednesday, September 29, 2010

Reigning The Nifty - 29th September, 2010

 Daily Chart

A hanging man after a shooting star. Two bearish candles in a row after a new top rings alarm bells.The fact that resistance at 6038 was respected once again makes one cautious of a reversal.The uptrendline from 5349 shown in red has been broken by a sideways move rather than a bearish down move.To add to the bearish signals, Nifty made a lower high and lower low.

Oscillators are showing negative divergence on daily charts.Breadth continues to be negative. Volumes were average.

 Half Hourly Chart

Half Hourly Charts show a break below the uptrendline from 5349. Support taken near the 61.8% fibo level of rise from 5932 to 6073. But the recovery in the last hours hit resistance exactly at the  61.8% fibo level of fall from 6073-5991 and the  uptrendline from 5349. Resistance from this trendline is at 6045-6078.

The range of 5932-6038 needs to be broken before any meaningful move can come in.A new rising wedge is seen as shown  on the chart. Appearance of quite a few bearish signals !

Trade light and with strict stops.

Happy Trading !!
Lakshmi Ramachandran


Anoop said...

Nifty made a lower high and lower low- Do u mean day's high and low or open and close price of candle compared to previous day. Pl clarify. Thanx.

Lakshmi Ramachandran said...

Day's high and low