Last week's identification of the bearish engulfing pattern as a potential reversal pattern proved right - Refer to the post for the 4th of June.This week's bullish engulfing pattern proves that.Close above the 40 and 100 wema, Stochstics moving up in buy mode from oversold zone,Rsi14 moving above 50 mark and Macd giving an uptick are all pointing to further bullishness.Strong resistance from the downtrendlines at 10090 and 11700.A breakout from 10090 may give a move upto 11700.
Daily Chart showing positive divergence on OBV
Daily charts too look positive with oscillators and OBV supporting an upmove.Close above all demas is another positive.5/20 and 5/50 dema cross in buy.Only cross of downtrendlines at 10074 and previous major peak at 11226 pending to declare the trend bullish.
Stochastics has reached the overbought zone and Friday's action forming a doji may be portending a pullback which should be a buying oppurtunity for the short term.Supports marked on the charts and fibonacci retracement levels marked below on half hourly chart.
Half Hourly Chart
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