Reigning The Nifty 8th January 2013

Daily Chart

Half Hourly Chart

Nifty made a new high at 6042 but soon melted and made a lower low of 5977 to form a bearish engulfing candle pattern.It was also an Outside Day pattern both signalling a possible reversal.The consecutive hanging man pattern had given enough warning to the bulls.

Half hourly chart shows a break down from the red rising wedge.Gaps made on the way up will now serve as support.Fibonacci supports for the last leg up from 5823 are marked. The  5965-5958-5951 should be strong support  for the Nifty.

Till these supports hold the uptrend is intact.Further action should tell us whether a medium term reversal has started.

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Happy Trading !!
   
Lakshmi Ramachandran
www.vipreetsafetrading.com