Half Hourly Chart
- Some buying support was seen on the last day of the week as nifty drifted down near the support line joining bottoms from November 2009 and nearly achieved the target,5165, of the pink head and shoulder shown on half hourly charts on 10th Feb,2011.Support on this line is at 5160 for the coming week.
- Volumes were high indicating capitualtion? The volumes on bearish days last week were low compared to the days on which spinning tops ( which show that the downward momentum may be waning) and the bullish engulfing candle was formed.This indicates a change in bearish sentiment may be round the corner.
- Falls are progressively getting smaller as pointed out in the half hourly chart. My crude way of looking at waves --I do not know elliot wave but hope to, soon.
- The daily candle is a bullish engulfing candle which has bullish implications.
- Break of 5160 support will take Nifty to 4786-4735-4700 ( supports shown in my earlier charts).
- First sign of bullishness would be breaking resistance of downtrendline at 5352-5318, shown on half hourly charts.
Reminder : Trend down as clearly depicted by the half hourly chart below. Signs of reversal should be used to pare short positions rather than go aggressively long till a higher high and higher low is formed.
follow me on twitter http://twitter.com/#!/lucksr
Happy Trading !!