Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
follow me on twitter!/lucksr

Thursday, December 13, 2012

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 to subscribe to my Daily Newsletter

follow me on twitter!/lucksr

Happy Trading !!
Lakshmi Ramachandran

No comments: