Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, July 8, 2011

Reigning The Bank Nifty 8th July 2011

 Daily Chart

The Bank Nifty made a bullish candle breaking out of the downtrendline from 13304.The candle engulfed the last two days range forming an expanding pattern.Expanding triangles are volatile formations found at tops and bottoms. They are reversal patterns.Though the formation is only 3 days it is important to read into the underlying psychology of it's bearishness which may play out in the short term too.This bearishness, if plays out,may only be a correction of the recent rise from 10340 as the 50 and 200 demas have given a golden cross once again.

A followup buying  not violating today's low and a close above today's high could negate the bearishness. Meanwhile caution on longs.

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Happy Trading !!
Lakshmi Ramachandran

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