S&P500 27th December 2012

Daily Chart 

 S&P500 broke below the red uptrending channel and the uptrendline from 1343 lows decisively.The channel break down gives a target of 1394.Supports are at 1412-1398-1385.Efforts to close above the uptrendline at 1430 is required on good volumes to change to a positive bias.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 26th December 2012

 Daily Chart

Half Hourly Chart

Nifty stuck in a sideways move between 5965-5823 as depicted by the red diamond pattern shown on daily chart .  Breakout points for the day are 5929-5847. Intraday range for breakout is marked on half hourly charts.

Till this sideways move between 5965-5823 remains unresolved it will be difficult to trade.The bias is down and the danger of breaking down is more.However holding the strong support of 5839-5823-5815 will see the Nifty attempting to break out on the upside.

Nifty has found strong resistance at 5965 and is correcting the move up from 5548 to 5965.Supports at 5839-5815 are holding well too making a range which needs to be broken to get more clarity of which path the Nifty is going to take. Till then reduce longs and wait for more clarity.

 Write to vipreetsafetrading@gmail.com for subscribing to my Daily and Weekly Newsletter




Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Disclaimer

All the calls made in this section are based on my judgment and the information available at the particular point of time. Adequate precaution has been taken while writing the analysis. However, no responsibility is taken for the losses or gains made through the analysis, either legally or otherwise. Readers are advised that acting on the analysis is at their own risk. Stock Market trading involves risk and is a high risk & high return business and I do not accept any financial and/or legal responsibility arising from the use of the information

Reigning The Bank Nifty 26th December 2012

  It was a no show day for Bank Nifty moving in a 100 point range on extremely low volumes.Bias remains down with a lower top and bottom candle. 12197-12143 remain support below which crucial support of 11978 could be tested. 12572  remains resistance below which bias will remain down to sideways.

Daily Chart

Latest action shows the last leg up having broken down from it's uptrendline.If trades above 12275,  12452 and higher levels could be tested as shown by the red rising wedge.

Half Hourly Chart

The inverted head and shoulder target of 12590 shown in the Newsletter for 18th September was almost achieved.Channel break target of 12690 is yet to be achieved.Bank Nifty is correcting the latest rise from 11125 to 12572.Support at  12238-12197 is holding well.A break below it would take Bank Nifty to 11900.

Further action will make the situation more clear. Till then reduce longs and watch for more clarity.

Write to vipreetsafetrading@gmail.com for subscribing to my Daily and Weekly Newsletter



Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Disclaimer

All the calls made in this section are based on my judgment and the information available at the particular point of time. Adequate precaution has been taken while writing the analysis. However, no responsibility is taken for the losses or gains made through the analysis, either legally or otherwise. Readers are advised that acting on the analysis is at their own risk. Stock Market trading involves risk and is a high risk & high return business and I do not accept any financial and/or legal responsibility arising from the use of the information

S&P500 26th December 2012

Daily Chart

 Support taken on the support line of the red uptrending channel.This may lead to some pullback towards the resistance line of the channel with a hurdle at 1444 from the downtrendline drawn from all time highs.Supports are at 1422-1412.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 24th December 2012

Weekly Chart 

Weekly charts continue to be bullish with each correction smaller than the previous one.The 1370-1075=295,  the  1422-1267=155 and 1474-1343=131.The bearishness of the shooting star made last week was not confirmed with a closing way above the shooting star's mid point.The close was also above the support line of the rising wedge.

 

Daily Chart 

 Daily Charts show a bearish bias with the neckline of the inverse head and shoulders being broken down.The recent high of 1448 needs to be taken out to indicate bullishness is regained.

 Happy Christmas !

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 21st December 2012

Daily Chart 

 Successful retest of the neckline completed. Now overhead resistance at 1446 from the blue downtrendline drawn from 1475 highs  and recent high of 1448 are immediate resistances.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 20th December 2012

Daily Chart

Daily Chart II

Half Hourly Chart

 

 

Nifty had a gap up opening and closed above the gap after dipping into it a few points.The candle formed was however very small failing to instill confidence that the upmove will continue. High of 5965 still remains resistance.

Daily chart II zooms into the latest action which also shows a rising wedge being formed.Rising wedges have a  series of higher highs and higher lows which keeps the trend inherently bullish.However, the loss of upside momentum on each successive high gives the pattern its bearish bias.Support is at 5851on the support line.5823 is the last prominent low.5815 is the top made on 5th October.Break of these supports will bring in weakness.Bullish candles on high volumes is required to show strength in the upmove.

Half hourly charts show the bearish head and shoulder pattern is still valid.Fibonacci supports are marked.

It is prudent to hedge longs  and  take profits on the way up .

 

 

Write to vipreetsafetrading@gmail.com for the Daily and Weekly Newsletter

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Disclaimer

All the calls made in this section are based on my judgment and the information available at the particular point of time. Adequate precaution has been taken while writing the analysis. However, no responsibility is taken for the losses or gains made through the analysis, either legally or otherwise. Readers are advised that acting on the analysis is at their own risk. Stock Market trading involves risk and is a high risk & high return business and I do not accept any financial and/or legal responsibility arising from the use of the information

Reigning The Bank Nifty 20th December 2012

Daily Chart

 

Half Hourly Chart

 

 

Bank Nifty made a higher high at 12572 resisting at the resistance line of the rising wedge once agin.A doji was formed which shows lack of conviction to continuing the upmove.The close was also below the resistance line of the red flag shown on daily charts.

Half hourly charts too show a sideways move with support now at 12290-12338 intraday.Other fibonacci supports are marked.

Bank Nifty has been within a rising wedge. Rising wedges have a  series of higher highs and higher lows which keeps the trend inherently bullish.However, the loss of upside momentum on each successive high gives the pattern its bearish bias.Bullish candles on huge volumes breaking above the resistance line are necessary to show conviction in the upmove.

The bias remains up but clearly the  momentum on the upmove is missing.These are signs that the markets may be topping.Keep booking profits on the way up and be ready for a correction by hedging your long positions.

Write to vipreetsafetrading@gmail.com to subscribe to the Daily and Weekly Newsletter

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Disclaimer

All the calls made in this section are based on my judgment and the information available at the particular point of time. Adequate precaution has been taken while writing the analysis. However, no responsibility is taken for the losses or gains made through the analysis, either legally or otherwise. Readers are advised that acting on the analysis is at their own risk. Stock Market trading involves risk and is a high risk & high return business and I do not accept any financial and/or legal responsibility arising from the use of the information

S&P500 20th December 2012

Daily Chart 

 Retest of the neckline.Fall and close below 1435 will negate the pattern .

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 19th December 2012

Daily Chart 

 The neckline of the bullish inverted head and shoulder pattern has been broken decisively.The target is 1527.

Immediate reistnace from the red trendline is at 1455 and support at 1424.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran

www.vipreetsafetrading.com

Reigning The Nifty 18th December 2012

Daily Chart

Half Houly Chart

 

Nifty is seen whipsawing around the resistance line of the rising wedge.A spinning top was formed showing indecision.5839 is still held and that is the level we need to watch for further direction. If holds Nifty can continue to move up to 5965-6050 levels and if breaks then a downmove till 5700 is possible.This has already been explained in the Newsletter yesterday and shown on the half hourly chart.

Half hourly chart shows today's action making a minor resistance at 5886.A move above this will be the first sign of the upmove resuming.Nifty has broken below the short term uptrendline indicating the neckline at 5839 may be in danger of breaking down.

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 18th December 2012

Daily Chart

Half Hourly Chart

Bank Nifty remained flat after trading in a very small range indicating a pause.

Have redrawn trendlines on half hourly charts to form a triangle.The Head and shoulder shown yesterday is still valid but the triangle is more apt and on breaking support line both patterns would have similar targets.So we follow the triangle which has support at 12145 and a break would give a target of 11950.

The bias remains up with a higher high higher low.The support of 12143 and the support line of the rising wedge remained intact.Only a break below 12143 will bring in weakness.

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 18th December 2012

Daily Chart 

 Right shoulder of the Inverse Head and Shoulders forming in a hurry?

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 17th December 2012

Weekly Chart 

Daily Chart

Shooting star on the weekly charts indicates some more weakness which may be the consolidation necessary for forming the right shoulder of the inverted head and shoulder with the red neckline at 1435 as can be seen on the daily charts.Supports are at 1398-1385 failing which we may be forced to assume that the downtrend may have resumed.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 14th December 2012

Daily Chart

Daily Chart II

Half Hourly Chart

The Inside Day pattern mentioned yetserday broke on the downside indicating the short term is down.The breakout from the resistance line of the rising wedge proved to be a false breakout with the Nifty breaking below it.The possibility of testing the support line of the rising wedge on daily charts is now possible.

Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels supports a fall.

Support at 5839 has still not been breached keeping the hopes of bulls alive.Break will find support at 5815-5805-5777 as marked on the charts.The continuation falling wedge on half hourly charts indicates this fall maybe a consolidation and the Nifty may ultimately breakout on the upside to resume the uptrend.Only a break below the support line of the rising wedge on daily charts  at 5682 will bring the rally from 4770 under threat.Resistance levels intraday are at 5880-5854.Support is at 5843-5833.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 14th December 2012

Daily Chart

Half Hourly Chart

Today, the Bank Nifty did weaken further but remained within the Inside Day range.An Outside Day was made today as today's range engulfed yesterday's range.This series of Inside and Outside Day's shows confusion about whether the uptrend would continue or not.Breadth has been negative since two days.Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels also indicates weakness.The Bank Nifty has resisted at the rising wedge on daily charts and is on it's way down.

Break of 12238 low made on 11th and the low of 12143 is still unviolated which indicates this may be a consolidation.The red flag forming also indicates the same.Supports are at 12146-12110 which should hold if our assumption is correct.The correction  is seen happening in a mild way. Only if the support line of the larger rising wedge on daily charts breaks will the uptrend from 9814 be in danger.

Possible supports and resistance marked on the charts.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 14th December 2012

Daily Chart 

 

 Bearishness of the shooting star confirmed with a huge bearish candle breaking and closing below the support of 1421.Looks like break below 1416 support on the rising channel shown in red is on the cards.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 13th December 2012

Daily Chart

Daily Chart II

Half Hourly Chart

  Nifty  made a sideways move within an extremely narrow range of 50 points forming an "Inside Day" pattern.

An Inside Day is a day that has a lower high and higher low than that of the prior day.Simply put, the high and the low of the previous day are not violated. Inference of this is, the market may be catching its breath before another up or down day. It could be indecision between bulls and bears . Or, it may be hesitation by the market players who are wary whether the current trend will continue.

The pattern can become quite powerful when it occurs after a long-lasting trend or at significant resistance and can therefore signal a reversal.This is true in case of the Bank Nifty. Confirmation would be when the low of the pattern which is 5865 is broken decisively and the close is below it.

Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels supports a fall.Low volumes suggest mild profit booking rather than aggressive selling.

The effect of the morning star saw a gap up open which rightly resisted at the support line of the rising wedge shown yesterday.

A falling wedge shown in blue is seen forming on half hourly charts which is a bullish pattern. Breakout from this pattern could see the Nifty resuming it's uptrend.Till the support at 5872 shown on daily chart II is held the upmove could resume. If breaks then could test the rising wedge support line at 5660.

Write to vipreetsafetrading@gmail.com for my Daily Newsletter.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 13th December 2012

Daily Chart

Half Hourly Chart

Bank Nifty  made a sideways move within an extremely narrow range of 114 points forming an "Inside Day" pattern.

An Inside Day is a day that has a lower high and higher low than that of the prior day.Simply put, the high and the low of the previous day are not violated. Inference of this is, the market may be catching its breath before another up or down day. It could be indecision between bulls and bears . Or, it may be hesitation by the market players who are wary whether the current trend will continue. 

The pattern can become quite powerful when it occurs after a long-lasting trend or at significant resistance and can therefore signal a reversal.This is true in case of the Bank Nifty. Confirmation would be when the low of the pattern which is 12238 is broken decisively and the close is below it.

Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels supports a fall.

The effect of the morning star saw a gap up open which rightly resisted at the support line of the uptrending channel shown yesterday.I have redrawn the lines to show an expanding triangle which is a bearish formation.Break from the support line will see a fall upto 11965.

A red falling wedge is seen forming which is a bullish pattern. Breakout from this pattern could see the Bank Nifty resuming it's uptrend.Else expect some pullback.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 13th December 2012

Daily Chart 

A shooting star was formed showing bears are very active at 1435 which is proving stiff resistance.Shooting stars are a bearish reversal candle pattern.A bearish candle closing below the low of the shooting star will confirm more bearishness to come.

  1420 is support on the green neckline and the black uptrendline from 1074 levels.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 12th December 2012

Daily Chart

Daily Chart II

Half Hourly Chart

  Nifty took support and closed above the rising wedge resistance line shown on Daily Chart II.An Outside Day pattern was formed on daily charts which could be signalling a reversal or deceleration of the current trend having occured  at the resistance of April 2011 top.

An outside day is when the day's candle completely encompasses the previous day's candle. It must have a higher high  and a lower low than the previous day.The big range of the outside day made today encompasses the range of the last two trading sessions.Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels supports this view.

 

The half hourly chart shows the  Nifty having broken down from a rising wedge.However, a morning star pattern has been formed at today's lows which is also the 23.6% fibo level, shown on the chart, indicating the  upmove from 5865 may continue.The pullback  should find resistance at 5913 to 5928  intraday at the support line of the rising wedge.With the daily charts showing signs of early bearishness the resistance may hold.If gives in 5965 could be tested. A cross above 5965 is necessary for further upsides.

 

A daily close below the Outside Day's low, which is 5865, will confirm further bearishness to come.5839 is important support and a fall below this will be an alert to the bulls.

Supports are marked on half hourly charts.

Write to vipreetsafetrading@gmail.com to subscribe to my Daily Newsletter

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 12th December 2012

Daily Chart

Half Hourly Chart

Bank Nifty made another futile attempt to close above the rising wedge.An Outside Day pattern was formed on daily charts which could be signalling a reversal or deceleration of the current trend having occured at resistance.

 An outside day is when the day's candle completely encompasses the previous day's candle. It must have a higher high  and a lower low than the previous day.The big range of the outside day made today encompasses the range of the last two trading sessions.Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the  80 levels supports this view.

The half hourly chart shows the Bank Nifty moving in an upward trending channel.A morning star pattern has been formed at the support line indicating the next leg up may have started.So a pullback to today's fall may continue which should find resistance at 12566 to 12593 intraday.With the daily charts showing signs of early bearishness the resistance may hold.

A daily close below the Outside Day's low, which is 12238, will confirm further bearishness to come.12143 is important support and a fall below this will be an alert to the bulls.

Supports are marked on half hourly charts.

Write to vipreetsafetrading@gmail.com to subscribe to my Daily Newsletter

 

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 12th December 2012

Daily Chart 

  Breakout from the cup and handle pattern gives a target of  1506 which seems a little unrealistic at the moment.However, one should keep it in mind and watch the followup action.Resistance at 1435 was hit making it a key level to contend with.The 76.4% retracement levels is at 1443 coinciding with the red channel support line at 1442.Watch for this strong resistance at 1435-1443 to be crossed.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 11th December 2012

Daily Chart 

Trading was in a narrow range between 1415-1422.Trade above 1417, which is the support line of the rising wedge, keeps the S&P in bull territory.A break above 1421, which is the level on the neckline of the cup and handle pattern, will give rise to upward momentum.The red uptrending channel will provide resistance and support at 1440 and 1408.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 10th December 2012

Weekly Chart

Nifty hit resistance at the 5944 mark and formed a small bodied candle indicating a breather may be taken after the previous week's remarkable bull candle.Oscillators are showing strength and room for some more upsides.

Daily Chart

Nifty reacted after moving above the hanging man's high but did not have the strength to maintain those levels.The close was below yesterday's close indicating a bearish bias. Friday's candle formed a bearish engulfing pattern but since the previous candle's real body was very small.But having occured after the hanging man bearishness is confirmed.  More weakness would set in if 5839 is broken.

Daily Chart

The daily chart above depicts levels Nifty can target if 5839 is held or broken. 6056 if held and  5637 if broken

Half Hourly Chart

Fibonacci retracement levels are marked on the chart above in case the weakness continues.Support on the support line of the expanding triangle is at 5828-5823 for the day.

Write to vipreetsafetrading@gmail.com to subscribe  to the Daily Newsletter.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 10th December 2012

Weekly Chart

The red triangle target of 12365 was achieved and Bank Nifty hit resistance at the resistance line of the rising wedge.This nearly always leads to a reaction towards the support line which is at 11672 for the week.Only a break below this level will lead to a deeper correction.Intermittent support exists at 11978 the April 2011 peak.If the resistances at 12546-12549 is taken out then the 12700 target which I have been mentioning since some time is achievable.First sign of weakness would be break and close below the weekly candle at 12053.

Daily Chart

Daily charts show a second attempt to break above the resistance line of the rising wedge which failed and a reaction may have set in.Resistance is at  12474 which needs to be taken out to move towards 12700.12143 is important support.

Half Hourly Chart

Half Hourly Charts II

The Half hourly charts show the 12143-12160-12191 area as strong support which is the previous swing low and fibonacci retracement levels.Chart two shows trendline support and resistance for intraday.

Write to vipreetsafetrading@gmail.com to subscribe  to the Daily Newsletter.

follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
  
Lakshmi Ramachandran
www.vipreetsafetrading.com