Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, March 19, 2012

Reigning The Bank Nifty 19th March 2012

Weekly Chart

Bullish Indications : A higher high higher low candle for the week.Traded above the uptrendline and the 40 and 100 wema. 40 and 100 wema in Buy. Breakout from the falling channel maintained.Bounce from the 38.2% retracement level (shown in green) is a bullish sign and the low of 9940 was maintained.Macd continues to give an uptick above zero line.
Bearish Indications : Weekly candle bearish with a long upper shadow having resisted at the red trendline. 40 and 100 wema bearishly aligned.Redrawn the uptrendline joining the low of the rally with this week's low to form a rising wedge which is a bearish pattern. Stochastics moving down from overbought region in sell mode below the 50 mark. Rsi14 has started moving down without reaching overbought zone implying lack of strength in the uptrend.

Daily Chart

Daily Chart

Bullish Indications : All demas bullishly aligned. Trade maintained above 200 dema. 50 and 200 dema continue in a golden cross.Uptrendline for this rally joining 9940 swing low intact. Flag  (redrawn) forming which is a bullish pattern.Gap between 10132-10505 not closed.
Bearish Indications : Close below the 20 dema.Lower high lower low candle for the second day in a row. Macd in a sell and given a downtick.Stochastic moved below 80 mark in sell mode.5 and 20 dema have turned down and on verge of giving a sell.

Conclusion :  The short term trend is turning down down. and the inverted bearish cup and handle pattern may take the Bank Nifty to 10190. Gap between 10132-10505 maintained. Till this gap is filled and low of 9940 is not broken the bias remains up. 
The flag on daily charts is still valid and is expected to break on the upside.
Continue the buy on dips till we get more confirmation of a down trend starting.
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Happy Trading !!
Lakshmi Ramachandran

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