Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, February 21, 2011

Reigning the Nifty - 21st February 2011

Weekly Chart

It is really amazing and  wonderful how trendlines work as support and resistance. The Nifty hit resistance exactly  at the red trendline and was back below the key resistance of 5556. The red trendline has resistance at 5587 for the coming week. As shown in my post of 18th Feb, the 5549-5556 level has been resistance way too many times and break above it has been hard to sustain.

Weekly Chart II

Falling wedge on weekly charts gets confirmed if there is a break and close above 5504.This would have bullish implications.Support at 5085.

Daily Chart

Getting tired of posting this chart showing retracement  levels.Waiting for a breakout from the falling wedge shown on weekly and from the inverted head and shoulder forming on daily with neckline at 5604 for Monday, to get rid of this chart.

Inverse Head and Shoulder forming clearly visible on half hourly charts

The bearish engulfing candle on high volumes and extremely bad breadth promises more downside though. Bears guarding the 200 dema at 5617 too threatens the bulls . Till these levels of 5604 and 5617 are conquered one is better off in the bear camp.

Half Hourly Chart

Flag breakout target of 5606 was nearly reached  and  set in a reaction. Nifty broke the rising wedge   and gave in very easily to the bears to record a fall of  157 points from the high of 5599.Target for the rising wedge is 5136.

Half Hourly Chart 

5340 is strong support --  it is the 61.8% fibo level as well as the support level for the gap formed while breaking out from the falling wedge on 14th February.

Supports are at 5440-5390-5340.  Resistance at 5509-5549-5599.

Attending a marraige at  Chennai. My next post on Friday  25th. Meanwhile,

Happy Trading !!
Lakshmi Ramachandran

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