Daily Chart II
Yesterday I wrote, " The swing low of 5937 , the 38.2% retracement level of rise from 5348 at 5959 and the 23.6% retracement level of rise from 4768 at 5970 should prove good supports.Look for signs of recovery around the 5950 levels ".
The sell off to 5906 was a bit unnerving though the supports came soon enough and the 5950 levels held on a closing basis .The red dotted channel too has been maintained on a closing basis.Support on the lower trendline of this channel is now at 5982.
Daily chart II shows oscillators at levels reached at the low of 5348.Today's candle though not bullish, does show positive efforts to stall the selling.With the longer term still in an uptrend one can be cautiously optimistic about the uptrend resuming.
Trade long with a stop loss of 5906.However trade light and be hedged till more signs of the uptrend resuming is visible.This will require a cross of 6114 which was the lower high made on 16th November 2010.
Supports are at 5982-5962-5906. Resistance is at 6023-6042-6053.
Happy Trading !!