Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Wednesday, November 24, 2010

Reigning The Nifty - 24th November, 2010

Daily Chart

Today's candle is a hammer, formed at very good support on the trendline drawn from 4786  low made in May 2010 shown in green dotted line.The level also coincides with  the 50%  fibonacci  retracement  level which is at 5848.A bounce from the 50% level is considered bullish. Such coinciding of support levels normally leads to reversals.

The Hammer pattern signifies, a weakening in bearish sentiment. The long lower wick signifies an initial continuation of the downtrend. However, renewed buying sentiment acts as support and drives the price higher to close near its opening price.A follow up buying taking prices higher will confirm the reversal.

Half Hourly Chart

A breakout from the downward sloping channel shown in the half hourly charts whoich is around 5982-5950 levels for tomorrow will set the momentum up. The neckline of the bearish head and shoulders pattern was broken intraday. Keep an eye on the neckline in case prices do not show much upward momentum.

Resistance 5945-6020-6144.         Support  5837-5824-5728.

Happy Trading !!
Lakshmi Ramachandran

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