May 21, 2010

NIFTY line chart channel should hold

  • NIFTY daily line chart shows that the price is near the bottom of the channel on a closing basis.
  • So today after the noise of the gap down opening if nifty manages to come back and close above 4875 it is ok.
  • otherwise we will break the channel on a closing basis.
  • And a large correction can be expected.
  • One pattern that can save bulls is the Descending broadening wedge that i have posted in this blog.
thank you


  1. @
    mok 11852206222016240633
    Thank you for your comments yesterday

    Sorry could not respond to your querry in time.

  2. I would like to mention How I interpret this chart.

    1) The long term trend from March, 2009 is broken already, Sideways possible or Down trend possible. But market is pulled downside, down trend.

    2) The parallel channel which you drawn is short term, last 6 months channel. Channel break will confirm more down trend and clue about next support.

  3. @Mark

    What ever you said is correct. If the break is confirmed today we may go down at least by 500 points in the coming months. So try short at resistance points.