Reigning The Nifty 20th September 2011

 Daily Chart

A gap down open from which the bulls never recovered. An island reversal has been formed.This is bearish. An island reversal occurs when there is a gap on both sides of the candle. Island reversals frequently show up after a trending move is in its final stages.The gap is shown below in red.

 Island Reversal

Half Hourly Chart

Lot of bearish signals.Lower high at 5143. The rally from 4720 has faltered at the 38.2% retracement levels which signify that the current trend has not reversed.Every rally since the low of 4720  seems to make bearish patterns. An Island reversal was made today. The current rising wedge was broken down today.

Bears seem to be dominating. If the swing low of 4911 breaks then the bulls are sure to retreat completely.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 20th September 2011

Daily Chart

A gap down open from which the bulls never recovered. An island reversal has been formed  where there is a gap on both sides of the candle. Island reversals frequently show up after a trending move is in its final stages.This is bearish .The gap is shown below in red.

Island Reversal

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 19th September 2011

Weekly Chart

Bullish engulfing candle on the weekly charts

Weekly Line Chart

Line charts show the minor peak crossed successfully.Till the minor low of 1154 is broken the short term trend is up.

The Daily Line Chart has not been successful in giving a "Dow buy" signal.That is a bit confusing ! Wait for the daily to signal a buy by closing above 1219 before going  bullish.

Daily Chart

Resisted at the 50 dema and formed a small white candle indicating momentum may be stalling.The Bear flag is forming well and till it is broken decisively on the upside all Bull attempts will be curbed.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Bank Nifty 19th September 2011

 Weekly Chart

Two weeks of sideways action. Last week saw the bulls more active leading to a high of 9972 .This week the bears were active making a low of 9260.A broadening formation is the result which occurs during high volatility, having a huge range but  little direction.This normally results in a break in the dominant trend which at the moment is down.The pattern has  resisted at the 100 wema and the previous low around 10017 which are strong resistances to be crossed for an upmove.

Daily Chart

The breakout from the downtrendline failed once again.Till this happens expect lacklustre movemnet.The high of 9972 and 50 dema at 10092 will be stiff resistances.



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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 19th September 2011

 Weekly Chart

Weekly Chart II

A lower high lower low candle .The pennant depicts the sideways movement nifty has been in since the gap down in the week ending 12th August. 5155 & 4970 are the levels to watch for further direction.Pennants though, are continuation patterns and breakout in the direction of the existing trend.

Stiff resistance at 5115  &  5350.

Daily Chart

The Nifty closed above the resistance line of the falling wedge, but failed to bring in  bullishness as the highs were not sustainable forming a black candle. The resistance line of the pennant which could also be the neckline of an inverted head and shoulder is at 5150.The support line is at 4971.trading above 5060 can attempt to cross the neckline and failure to stay above 5060 will test the 4971 levels.

Half Hourly Chart

So we have an inverted head and shoulder pattern which is bullish, an upward sloping  broadening pattern  which is bearish and a rising wedge , shown in red, which is bearish too.Holding 5073-5120 for the day will lead to break of the neckline. Break may find support at 4972-4989 which is the support line of the broadening formation.

Resistance at 5155-5229-5350. Supports 5073-4989-4945-4910

Simply Put

I love Line charts since they make analysis simple.The falling wedge formed since June second half has given a breakout.The trendline drawn in the middle joining a series of lows will give stiff resistance.If the breakout is maintained, and the middle trendline is scaled  then probabilities of  testing the downtrendline from November 2010 highs is high. The point of contention for the week is 5065.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com