August 6, 2010

  • There is a potential double top formation in nifty futures line chart.
  • If the index stays below 5452 will work well. Break of 5426 will give momentum for the down move.
  • If price goes above 5471 the pattern is invalid.
RELIANCE INDUSTRIES WEEKLY CHART
  • Reliance Industries is trading close to an important support line.
  • It is a good opportunity to go long with a small stop loss. 
  • One should also consider the opportunity of going short if the support line breaks.
  • Both trades are possible Safe entry above 1025 go long. Below 975 go short.
  • Nifty futures has resistance at 5471.
  • For the up move to sustain nifty futures should trade above 5471.
  • An hourly close above this level will be good for the bulls. 
  • Failing to cross this level will be bearish in the short term.
HOURLY CHART


  • The daily candle has given a doji showing indecision.
  • The hourly chart has been doing a side way's consolidation for quite sometime now.
  • The hourly line chart shows the importance of a trend line.
  • If there is a correction from here the trend line may  support the index again.

Disclaimer

All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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My Favourite Quote

"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore