December 1, 2010

Nifty Daily Analysis

  • 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

6 comments:

  1. Hi..San,

    The 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.

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  2. Hi Sir

    On 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

    ReplyDelete
  3. sir/san,

    i 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

    ReplyDelete
  4. @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

    December 1, 2010 10:31 AM

    ReplyDelete
  5. @San where do you reply at JN or here?

    ReplyDelete
  6. @Bhavan
    I will update reliance chart later.

    ReplyDelete