Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Tuesday, April 26, 2011

Reigning the Bank Nifty 26th April,2011

Daily Chart

The megaphone pattern got another hit on the upside forming the required third peak at 11978,today's high. The Megaphone Top usually consists of three ascending peaks and two descending troughs. Though the higher tops give a feeling that the uptrend is still on, it is important to read the pattern carefully and see that the bears too are active forcing the price to make lower lows.The signal that the pattern is complete occurs when prices fall below the support line.When you see a broadening top,prices will eventually drop.The pattern would fail when the highest high of the pattern is taken out decisively.The shooting star formed today at the resistance line indicates a down leg to the support line of the megaphone.

The inverted head and shoulder remains in contention .

The gap at 11836-11813 will give support.  Other important as marked on the chart are 11482-11429-11405.

Tighten stops on longs. 
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Happy Trading !!
Lakshmi Ramachandran

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