Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Saturday, June 11, 2011

Reigning The Nifty Weekly Update - 11th June, 2011

Weekly Chart 

Weekly Chart II

Negatives :

  • Lower high lower low candle for the week.
  • Breadth negative.
  • Long upper shadows since two weeks showing selling on rises.
  • The fall from 5944 to 5328 was able to recover just about 40% and seems to have resumed the fall.
  • Trade below the uptrendline from March 2009 for the fourth week (green dotted line).

Positives :

  • Small bodied candles since  the last five weeks on extremely low volumes indicating selling momentum is waning.
  • Low of 5328 made on week ended 27th May held.
  • Low of 5177 made on  11th Feb still not violated keeping the medium term trend UP.
  • 100 wema which is a  good support during uptrends is still unviolated.

Negative pointers tell us a correction of the rally from March 2009 is on. The positive ones too support this view. Till the positive points are violated, the possibility of the uptrend  resuming remain.

A move above 5740 or below 5328  is needed to set the momentum up or down.
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Happy Trading !!
Lakshmi Ramachandran

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