Daily Line Chart
Yesterday I wrote , Support taken on the trendline joining tops from June 2010 at 5700.This is significant as this is the trendline from which Nifty brokeout from almost a 12 month consolidation. Holding this low will be bullish.The 5735-5745 area on Line charts is significant support with fibo levels coinciding as shown on the charts.Support held would therefore be bullish and if broken then more fall to come.
The supports held well with a follow up bullish candle on good volumes and breadth. Still a lot of work necessary to put the bull rail on track. The first being a cross above the previous peak of 6181, failing which get ready to get on to the bear rail once again.
Resistance at 5883-5939-5997. Supports at 5832-5806-5787-5767.
Half Hourly Chart
And the half hourly chart reminds us that taking out 6181 is ever so important to avoid this potential head and shoulder pattern!!
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