Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, March 12, 2012

Reigning The Nifty 12th March 2012

Weekly Chart

Bullish Indications : The  Nifty is trading above the 40 and 100 wema.Breakout from the downtrending channel since November 2010 maintained.Macd continues to give an uptick above zero line.Weekly candle with long lower shadow indicating buying at lower levels.
Bearish Indications : Weekly candle continued to be a lower high and lower low one. 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.This is a bearish pattern. Stochastics moving down from overbought region in sell mode.Rsi14 has started moving down without reaching overbought zone implying lack of strength in the uptrend.

Daily Chart

Daily Chart

Bullish Indications : Close above 20 dema. Bounce from the 50 & 200 dema.The breakout from the down trending channel intact.The golden cross of the 50 and 200 dema intact.Gapped up on Friday above  the green trendline and closed above it too.Pennant formation preempts a bullish breakout.Stochastics has given a positive divergence in the oversold level and Rsi14 started moving up above the 50 mark.

Bearish Indications :  The short term averages 5 & 20 dema still in a sell.Breakout from the short term down trendline pending.


Conclusion : The Nifty has broken out of  a long term downtrending channel which is a bullish signal. The 50 and 200 dema have given a golden cross indicating the Nifty is in an uptrend.Short term downtrend shows signs of reversing.Resume " buy on dips " startegy.

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Happy Trading !!
Lakshmi Ramachandran

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