Bullish Indications : A higher high higher low candle for the week.Traded above the uptrendline and the 40 and 100 wema.Breakout from the falling channel maintained.Bounce from the 38.2% retracement level (shown in green) is a bullish sign and the low of 5171 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 pink 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.
Bullish Indications : All demas bullishly aligned. Trade maintained above green neckline.Uptrendline for this rally joining 5171 swing low unbroken.Flag (redrawn) forming which is a bullish pattern.Gap between 5220-5304 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.Rsi14 below 50 level.5 and 20 dema have turned down and on verge of giving a sell.
Half Hourly Chart
Conclusion : The trend is up but momentum has waned. Gap between 5222-5304 maintained. Till this gap is filled and low of 5171 not broken the trend remains up.
The Inverse head and shoulder pattern shown on half hourly charts and the flag on daily charts is still valid.
Continue the buy on dips till we get more confirmation of a down trend starting.
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