Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
follow me on twitter http://twitter.com/#!/lucksr

Monday, March 26, 2012

Reigning The Bank Nifty 26th March 2012



Weekly Chart


Weekly Chart


Bullish Indications : Breakout from the downward sloping channel of November 2010 to December 2011 intact. 40 & 100 wema in buy. Price bounced off both 40 & 100 wema after taking support on them.         Only  38.2 % of the rally from 7766  retraced and this low of 9940 held for the third week in a row.The bullish flag forming during correction from 11226 still valid. Rsi14 above 50 level.Medium and long term moving averages 50,100 & 200 wema bullishly aligned.
Bearish Indications : Lower low lower high candle formed.Uptrendline from the lows of this rally joing swing low of 9940 has been broken. Stochastic has moved below 50 level.Macd given a down tick. 20 wema still bearishly aligned with the 40,50 & 100 wema.


Daily Chart



Daily Chart



Bullish Indications : Support taken on the magenta colored  trendline joining lows 9509 and 9940.Closed above the 50 dema  once again. 20,50,200 dema bullishly aligned.Flag pattern still valid.The downmove could also be drawn as a pennant as shown in the daily chart above.However bothe the flag and pennant are continuation patterns and in this case bullish.
Bearish Indications : An inside day pattern after an outside day pattern showing confusion. 5 and 20 dema bearishly aligned.Macd continues to give a downtick and now in negative territory. Stochastics and Rsi14 below 50 mark.Nifty continues to be be below the uptrendline from 7888.


Half Hourly Chart



The Bank Nifty is in a short term downtrend and will reverse the trend only if successfully moves above 10912 which is the lower top made on 14th March 2012.Till the low of 9940 is not taken out chances of breaking out from the flag formation is high. If  9940 breaks then technically the Bank Nifty would  resume it's downtrend having made a lower high and lower low.It would be prudent to watch whether the flag support survives the bear onslaught and then declare the trend down.



follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

No comments: