April 21, 2011

Nifty Week in a Descending Broadening Wedge

  •  According to Bulkowski Descending broadening wedges are found  most often with upward breakouts in a bull market. Downward breakouts are quite rare.
  • But for us to go long positionally we have to see two things the resistance line in daily chart getting  broken and daily candle closing above 5950.
  • Getting resisted again at the resistance line will be negative. Remember we have not gone above the weekly reversal candle formed between 4th and 8th april.
By at

2 comments:

  1. PrabakarApril 21, 2011 at 8:41 AM

    Good Morning San.

    Yesterday. I missed to see your note and thought it will not cross 5831. Lost.

    Sure a Gap up i believe today, is it ok to buy at gap filling?

    ReplyDelete
  2. SanApril 21, 2011 at 10:33 AM

    @Prabakar
    Short term is up So it is better to buy on dips unless we see a bigger correction. Nifty spot trading below 5850 will give bears a chance to reenter.

    ReplyDelete

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