NIFTY WEEKEND ANALYSIS - DAILY CHART
- NIFTY is trading above its 20 day moving average. But need some more candles to form above the 20 day moving average for bullishness to continue.
- Nifty hour line chart is forming a rising wedge pattern. If nifty correct from this pattern on monday we have support around 5050.
- This move is a retracement of the fall from 5399 to 4786. And we are trading above the 50% retracement level. If we don't sustain above 50% levels nifty may go back and retest 38.2% level at 5020.
- The most important chart is the hourly line chart showing a rising wedge. Dow jones broke down from a similar pattern over night.
- Dow broke the rising wedge on opening bell itself and went below some critical support levels CLICK HERE TO SEE THE DOW JONES CHART
San,
ReplyDeletegood stuff. It is a Evening star pattern waiting to happen - almost a given, with Europe and US down 3% on Friday. So we are going to test 5050s. My friend Girish has been saying futures data does not support this runup. So a decent drop is in the cards. The question is: if we go back to the downtrend channel again, then the trendline connecting Nov and Feb lows ( which acted as the bounce off point on May end at 4780 ) which will come around 4850-80 will be a strong support again.
gd
@golfdude
ReplyDeleteWhat your friend has said is absolutely correct about the nifty futures data. Such huge discounts can occur only when the big investors are not participating.
And about the trend line, I think if we go back to test it in a hurry it may break.
hi san,
ReplyDeletenow we can simply click your link at JustNifty for the charts !
keep it going,
@Mok
ReplyDeleteI just saw my link in justnifty. Thanks for breaking the news.
San,
ReplyDeleteFibo analysis for the last runup ( from 4780 to 5145 ) - support levels are 5060, 5010, 4965. 4920, 4860, 4780.
gd
@golfdude
ReplyDeleteI am sure one can use these support levels when the correction starts.
thanks