May 21, 2013

NIFTY Engulfing, Divergence and Support levels

  • Nifty daily chart managed to form  a bearish engulfing pattern. Price closed below 5 day High EMA and for bears there is also a negative divergence between price and RSI. 
  • For bulls though the up trend is still intact and the current price action is happening above crucial support levels. Supports shown in chart 2 are crucial for bears to make price week should close below 6000 levels. Sustaining above these levels will favor bulls to extend the rally.


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