April 12, 2014

  • First chart shows price testing crucial support zone of a broadening pattern. Weekly chart shows price testing Lower bollinger band.
  • Price is also near 200 Day SMA. Unable to close below 200 SMA may result in a bounce. 
 

  • NIFTY Daily chart shows price continues to remain in a strong bullish trend.
  • Weakness can only be seen once price closes below the Low EMA's and the support lines shown in 2nd chart. crucial level to hold above 6650.
  • MACD Histogram shows negative divergence. When the trend remains strong divergences takes time to work. Sometimes they do fail by giving sideways consolidation.
  • last chart shows the weekly time frame with is stochast above 80%. Unless stochastic dips below 80% there will not be bigger corrections. 

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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