Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
follow me on twitter!/lucksr

Monday, May 30, 2011

Reigning The Nifty -30th May 2011

 Daily Chart

Daily Chart II

The weekly candle formed a bullish hammer at good support. The daily charts show support taken once again at the 5348 levels which has been broken twice, but only briefly. Positive divergences on oscillators, shown in Chart II, encourage the bullish view. Breakout from the short term trendline joining tops from 5605 top on 13th May  promises some pullback.Volumes on the last two days were encouraging.

However this could be the right shoulder of a bearish head and shoulder pattern forming. The 50 and 200 dema too are bearishly aligned for the second time since the fall from 6338. So one needs to be cautious till more evidence of bullishness emerges.

Half Hourly Chart

Half Hourly Chart II

Half hourly charts show clearly that the right shoulder of  the head and shoulder bearish pattern may be forming.Chances of targetting 5700 are good , a level which should prove strong resistance.

Mild bullishness is creeping in but it is difficult and too early to pinpoint whether it is a reversal or just a pullback. Being cautiously optimistic till the neckline breaks will be a prudent strategy.

follow me on twitter!/lucksr

Happy Trading !!
Lakshmi Ramachandran

No comments: