Fibonacci Resistance
Nifty
had a volatile day closing gap support. An outside day pattern was
formed indicating indecision and confusion about the direction.The
candle was a bearish engulfing one. With the Nifty in a triangle it is
futile to look at these patterns as reversal patterns.Instead we will
look to the high
-5809 and low -5803 of the pattern which will set immediate direction.
The
down trendline from 6229 proved resistance and is now placed at
5862.The green uptrendline from 5580 on half hourly chart has been
broken down.We wait to see whether support from the small red triangle
at 5795-5801 holds before getting bearish and wishing away the inverted
head and shoulder's right shoulder which is forming and still valid.
The low of the hammer -5775 - continues to be crucial support for the
upmove from 5566 to continue.It is also the 38.2% fibo level of rise
from 5567 to 5904. The 200 Ema is at 5767 thereby offering a good
cushion at the 5767-5775 area.
Resistances are at 5862-5879-5904-5941 and Support at 5803-5775-5749-5682.
Nifty continues
to flip flop in confusion with an
almost equal fight between the bulls and bears. Wait for a breakout
from the triangle and neckline of the inverted head and shoulder
pattern.Till then trade light and with strict stops.Longs can have a
stop at 5776 and shorts at 5905.
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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