Yearly Chart
Yearly chart shows a definite pullback after a down year.Only on one occasion -- 2000 and 2001 did the fall continue.The volumes on the 2011 fall was low implying it was just a correction.4200-4300 should be a good level to start going long.
Monthly Chart
Monthly Charts are bearish, moving in a what looks like a bear flag.But being 13 months old makes it a falling channel.Support for the month is at 4360 and resistance at 5296.
Weekly Chart II
The trend is down and nifty has closed at the lowest level in 2.5 years. In Chart weekly II, I have drawn the neckline as per line chart, that is close only chart, and then converted it to a candlestick chart. Close only charts are more significant and shows the real picture.Thus we clearly see two consecutive closes below the neckline. Target would be 3166.
Daily Chart
Nifty seems to be on it’s way down to test 4531.Break below will find support at 4494-4438 thus achieving the target of 4436 marked on 5th August 2011
Half Hourly Charts
Yearly chart shows a definite pullback after a down year.Only on one occasion -- 2000 and 2001 did the fall continue.The volumes on the 2011 fall was low implying it was just a correction.4200-4300 should be a good level to start going long.
Monthly Chart
Monthly Charts are bearish, moving in a what looks like a bear flag.But being 13 months old makes it a falling channel.Support for the month is at 4360 and resistance at 5296.
Weekly Chart
Weekly Chart II
The trend is down and nifty has closed at the lowest level in 2.5 years. In Chart weekly II, I have drawn the neckline as per line chart, that is close only chart, and then converted it to a candlestick chart. Close only charts are more significant and shows the real picture.Thus we clearly see two consecutive closes below the neckline. Target would be 3166.
Daily Chart
Nifty seems to be on it’s way down to test 4531.Break below will find support at 4494-4438 thus achieving the target of 4436 marked on 5th August 2011
Positive
divergences intact on daily charts as shown below.So beware a pullback. However, only a cross above 4800
signals a short term reversal.
Daily Chart
Half Hourly Charts
Fallen below 61.8% retracement level of the
last rise to from 4531 to 4800.Forming a falling wedge having resistance at 4712-4694 and supports at 4483-4477.
Conclusion : Trend is clearly down and weakness persists with pullbacks
fizzling out sooner each time as is vivid with the formation of a
falling wedge on half hourly charts.The daily, weekly and monthly charts
are reaching oversold zone and started showing positive
divergences.Yearly charts historically have shown a pullback after a
down year.
The rising wedge is a bullish pattern but till it breaks on the upside
bullishness cannot be assumed.So till this happens stay short for
targets already discussed.
follow me on twitter http://twitter.com/#!/lucksr
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
No comments:
Post a Comment