Half Hourly Chart
Last week I had pointed out that the candles of the past few weeks had clearly indicated bearishness. The bulls made way for the bears and the Bank Nifty broke down from the rising wedge and a bearish head and shoulder pattern to give lower targets of 10900 and 11149 respectively.The larger rising wedge on daily charts too was broken today and gives a larger downside target of 9580.
Fibonacci Retracement Chart
Keeping targets in mind we need to be aware of strong support areas which may prevent the Bank Nifty from achieving those targets. 11125 is the key support area which will be the decider of the continuation of the uptrend.If this fails the gap support at 10797-10642 will come into focus.This gap has been held for exactly two months.This area, 10805 to 10642, as shown on chart above is a strong support area. Breaking below this area will therefore be a very bearish indication.
Minor supports marked on daily and half hourly charts.
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