Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, October 8, 2012

Reigning The Nifty 8th October 2012

Weekly Chart

Daily Chart

Half Hourly Chart

Weekly candle shows profit booking at higher levels.OBV on weekly and daily charts however has moved up and broken above it's February 2012 high showing a strong uptrend.Weekly oscillators continue to show strength.5944-5953 remains strong resistance as pointed out on the weekly chart.

An "outside day" formed on daily charts could be signalling a reversal.An outside day is when the day's candle completely encompasses the previous day's candle. It must have a higher high than the previous day and a lower low than the previous day.The big range of the outside day and the previous day conveys more emphatically that a  trend change may be round the corner.Daily charts show a break from the rising wedge which could lead to a pullback.The rising wedge target is around 5200.But Nifty has two gaps within this one at 5435-5527  and  5238-5309.A breach of the first gap will ring alarm bells.Till it holds the uptrend is safe.

Half hourly charts show 5515 as a fibonacci cluster area.This coincides with the gap support at 5527 making the area strong support.

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Happy Trading !!
Lakshmi Ramachandran

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