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 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.

  • 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.


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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