- The falling wedge and the descending channel has given price action in favor of the bulls.
- But as shown in the 3rd chart the Fib levels of 38.2% to 61.8% are good resistance areas.
- 4th chart shows 20 and 50 Day Moving Average doing a bearish cross. But Nifty is getting support from 100 DMA which has to break for the bearish cross to work.
- DOW JONES EOD ANALYSIS
Hi..San,
ReplyDeleteThe effort to bring the short term average below a medium average is so much that on the cross over time a counter trend rally is in place due to highly oversold conditions..
A normal counter trend rally takes it to the cross over point.
Hi Sir
ReplyDeleteOn seeing the price action i too believe a counter trend rally is on.
Normally the bearish crosses like death cross happen during highly oversold condition. Although this is not a death cross nifty looks highly oversold as you said. So a counter trend rally is possible.
Thanks for your views Sir
sir/san,
ReplyDeletei differ a bit. 4 instances in this bull market
where 20 sma went below 50 sma (mar 2009) we were fine. this is 5th one
@San any view on RIL? And what price is the cross suggested in your and Sir's comment so that we can safely book out in one lot is it @6072
ReplyDeleteDecember 1, 2010 10:31 AM
@San where do you reply at JN or here?
ReplyDelete@Bhavan
ReplyDeleteI will update reliance chart later.