Weekly Chart II
An "Inside" pattern on weekly charts which has the upper end at 5608 and lower end at 5308. Chart II keeps bullish options open with a falling wedge having 5500 as resistance and 4935 as support.Trading has been within the channel formed by joining highs of Jan & April 2010 and lows of Feb and may 2010. Support and resistance on this channel is at 5095-5733.
Strong supports for the coming week 5308-5095-4935 and resistances 5500-5608-5733.
Daily Chart II
The 50 and 200 dema have started trending downwards and the Nifty breaking down from the tiny triangle indicates bear pressure. Only a trade above 5608, which is a very strong resistance area -- 5608 is the high made after the fall to 5177 and the 50 dema and 200 dema are at 5575 and 5595 respectively --, will bring back some bullishness .
Half Hourly Chart
Half Hourly Chart II
Half hourly charts still playing out the double bottom and a double top mentioned in my post of 7th March. Crossing 5608 will confirm a double bottom and a fall below 5232-5177 will confirm a double top. Whichever way it breaks will give a move in that direction of 370 points.
The diamond pattern proved bearish and has a target of 5302.This level is also weekly support on trendline joining lows of 5177 and 5232.
As shown in Chart II 5408 has been support on several bear attacks. The diamond pattern and the pink decending triangle indicate 5408 may be under threat and the double top will have it's way !! Stops at 5408 on short term longs would be prudent.
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