July 15, 2011

NIFTY Descending Channel and Rounding Top

  • Twice nifty has found support @ 5500 level as shown in hour time frame.
  • For bulls a bigger up move will be possible only if they manage to break and close above the descending channel. That will happen if they close above 5625 - 5635 level.
  • Even if price gives an intraday up move bears will find help from the resistance line. If the up move gets resisted then correction towards 5500 is likely to happen.
  • Bigger sell may arise if price closes below 5500 level. Closing below 5500 will complete a rounding top formation.