Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, May 28, 2011

Reigning The Nifty Weekly Update 28th May 2011

Weekly Chart

 Weekly Chart II

  • A bullish hammer on weekly charts conforming to the physical features perfectly -- Small real body at the upper trading range, long lower shadow at least twice the length of the body, little or no upper shadow, occured in a downtrend.
  • The hammer occuring  at good support -- on the red trendline on chart II  - 5330 held  ( refer my weekly post of 14th May  ), makes the bullishness more convincing.
  • 100 wema support respected once again , earlier supported when Nifty fell to 5177.
  • Follow up buying, forming a white candle for the coming week, required to confirm the bullishness.
  • The 5300 level is strong support and a crucial level to be held as shown on the charts.Only a break below this level will bring in panic.
Weekly charts are weak with the break below the uptrendline from March 2009 lows having been broken decisively. This is the second consecutive week of trade below the trendline. However, the bullish hammer occuring at good support, the holding of the 100 wema and the 5300 level , raises hopes of some recovery efforts.

One could be cautiously optimistic with a stop of  5300. Hurdles at  5582-5640-5710.

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Happy Trading !!
Lakshmi Ramachandran

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