Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Wednesday, February 2, 2011

Reigning the Nifty - 2nd February 2011

Daily Chart

The triangle target of 5400 was achieved.  Today's trade, though bearish, kept getting support around the 5400 level.Around this level are multiple fibonacci supports and previous support zone as visible on the chart. A bearish engulfing pattern at such a  multiple support level  makes me identify the candle as potentially  bullish.As explained  in my previous posts the last gasp sellers create a bearish engulfing pattern which usually is followed by increased buying.Watch out for buying oppurtunities with tight stops or  hedge the longs as only the follow up candle will confirm the bullishness  and there are no other signs of a turn around.

Half Hourly Chart

The sharp falling wedge has resistance at 5470-5401  and support only below 5350. Breakout from the wedge could turn the scene mildly bullish for a decent pullback.

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Happy Trading !!
Lakshmi Ramachandran

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