Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, November 16, 2012

Reigning The Bank Nifty 15th November 2012



Half Hourly Chart



Rising wedge seen forming on daily charts which is a bearish formation.It shows that the trading range is getting narrower which will finally lead to a  break down.The rising wedge occuring at highs is a bearish reversal pattern.
The half hourly chart shows another rising wedge depicted well in red.This gives support to the bearish bias of the daily charts.Also increases possibility of the trading range which we have been experiencing since six weeks  resolving on the bearish side.If the upmove from 11427 continues then we could expect a higher high than 11719 which will be the third touch point of the rising wedge.Level for tomorrow at the resistance line is at 11748.Support line is at 11545.


Taking a narrower look at the chart an "Inside Day" pattern occured once again on daily charts ! The Mahurat session too stayed within that range. This shows indecision and we once again watch whether the high of the Inside Day  at 11664 breaks first taking the Bank Nifty higher or lower if the low at 11427 breaks.
If the low breaks it will be a break out from the smaller &  larger rising wedge as well as the uptrendline from 9814  and the Bank Nifty could make a move down of 600 points.

With the weekly charts starting to show bearish candlesticks and the daily charts throwing up bearish patterns one needs to get fairly cautious on longs. 


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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

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