- The breakout candle is showing good momentum.
- Now real strength will be visible only if it manages to clear the recent high.
- Break and closing the day above the recent high will be positive.
- MCLEOD RUSSEL CHART ANALYSIS
December 24, 2010
- MCLEOD RUSSEL is forming a bullish engulfing pattern in weekly chart which will be confirmed with today's closing price.
- Stock has taken support at its 78.6% Retrace of its fall from 311 to 165.
- Resistance level is at 220 which is the 61.8% Fib level of the same fall mentioned above. Closing above 220 can lift the stock to 238 levels.
- Getting resisted at 220 will be negative.
- The range of nifty getting narrow as shown in the weekly chart.
- This consolidation should give direction today or next week. As price is close to the apex of the pattern it will give good direction soon.
- Nifty tried to breakdown below the support line but came back to close within the range.
- INTRADAY PATTERNS AT WORK (DESCENDING TRIANGLE OF S&P 500)
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