Weekly Chart
Weekly Chart II
Bullish Indications : Three week low of 5136 held.40 and 100 wema bullishly crossed. Stochastics in buy before reaching the oversold level and Rsi14 above the 50 level.Macd is above zero level.The correction from 5629 has been on falling volumes supporting the flag pattern that the correction may be consolidation.The right shoulder of the inverse head and shoulder pattern shown on chart II however demands high volumes on the way up.
Bearish Indications : Last week's shooting star candle pattern was confirmed with a bearish candle this week.Uptrendline from 4588 has been broken and close below the trendline.Rsi14 has turned down and broken it's 3 week low corresponding with Nifty's 5136. Macd has given a downtick.
Daily Chart
Bullish Indications : Flag formation still valid.20,50 and 200 dema bullishly aligned keeping the uptrend intact.Low of 5136 held.
Bearish Indications : Volatility high. Nifty below all demas.Green trendline broken once again. Red downtrendline proves stiff resistance.Uptrendline from 4588 broken and Nifty closed below it. Macd below zero line and moving down. Rsi14 showing weakness below 50 line.
Half Hourly Chart
Half Hourly Chart II
The Nifty resisted exactly at the 61.8% retrcement level of the last leg down from 5378 to 5191 and broke the low of 5191. This is bearish and the Nifty may test the previous low of 5136. If breaks then the downmove will accelerate.Till the flag's support line is held bullish views can be held.The triangle breakdown shown on half hourly chart II has a target of 4994 which coincides with the support line of the flag pattern.The flag support on weekly charts is at 4938.Till this holds the uptrend could resume.
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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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