Weekly Chart II
Bullish Indications : Bullish candle after a doji indicates consolidation in doji week.Volumes have been good in this rally indicating serious buying.Macd has moved above the zero line.Rsi14 showing strength having moved above it’s December 2010 level.5399 peak has been crossed decisively.
Bearish Indications : Stochastics is in sell mode in the extreme overbought zone implying a correction is due anytime.The 20 and 50 wema are still bearishly aligned.
Bullish Indications : Gap up opening once again making new highs for the rally.Oscillators showing strength in the overbought region.
Bearish Indications : Doji formed with long uppershadow indicating selling at higher levels.Oscillators in overbought region making Nifty vulnerable to a correction.50 and 200 dema still bearishly aligned.The rise has been sharp so a correction is due.61.8% retracement of entire fall from 6338 to 4531 at 5650 can prove strong resistance.
Half Hourly Chart
Conclusion : Trend : Up,Oscillators : Short term overbought , Correction overdue.The doji on daily charts needs to be monitored as it may be signalling a reversal. Only a fall below 5323 will accelerate a fall and only a fall below 5121 will prove to be a reversal.No signs of a reversal yet. Till then continue longs with a stop loss and buy on dips is the mantra.
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