February 1, 2012
- Nifty does a Bullish month it narrowly missed the 5 Month High EMA like it has done many times during this down trend.
- For a bigger move to happen price has to give a clear breakout from this descending channel.
- Fibonacci fan's shows the beauty of Fib lines Nifty took support at Golden ratio line and rallied to close exactly at the 50% Fib line.
- For bulls February candle shall trade above last month high price for the momentum to sustain or the larger trend will take effect.
- In the last few attempts whenever 5 Day Low EMA approached 200 SMA it only managed to fall fast.
- One more candle above 200 SMA will confirm a breakout. Bears badly need a close below 5 Day Low EMA.
- If price manage to stay above 200 SMA price will move into the previous support zone as shown in 3rd Chart.
- Chart discussed below has given a good breakout in favor of bulls. candle closed outside the pattern and an up move followed. Price looks good to reach the recent high made in ES.
- Next breakout from the above pattern should give good direction provided its on closing basis.
- Price may test 100 Period SMA again which acted as support yesterday. Close below this average line may favor a bearish trade.
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