Weekend Views On Nifty!!!

We have a weekly chart above. Nifty managed to close just a bit below the 50% retracement (4542) of the last swing. Above that we have resistance at 4647 and then the 61.8% retracement at 4730, above that the bulls will use all their might to reach the pschycological barrier of 5000! The support like I said earlier was 4370 and now 4450/70 has been tried and tested so should hold.

Now a look at the daily chart below, after two shooting stars the bulls fought back with a hammer. The battle is on! A close above 4630 opens new doors for nifty. The immediate support for Nifty is at 4450/70. We might have the 20 and 50 period MA crossover at 4300 levels; this in future should be another important point of reckoning. The ADX is flat and sulking it needs to get up and start rising to sustain this positive bias in Nifty.

Finally we move on towards the hourly chart. We have HH and HL in place. We need to make another HH taking out 4615 and then make sure we hold the recent HL at 4464. This is important for the trend to continue. A LH and a HL now will only lead to choppiness, congestion a.k.a. a Triangle? We have a likely hood of making a cup and handle on the hourly; a break above 4650 should confirm it. This has a minimum target of 4850!

To sum up I think till our short term support at 4450/70 holds we are in the game. Any break and close below 4370 would change the whole scenario. Another point I would like to make is that now we will start seeing a lot of negative divergences in the making. Remember they are just a cautioning tool; the real confirmation would come from the Price, breaking an important trend line or a MA support. My last post where I whispered a wedge and a Wolfe stands firm. It’s just prolonged a wee bit. Anyway like my good friend Ilango commented SHOUT TILL PROVED OTHERWISE so that makes it INNOCENT TILL PROVEN GUILTY!!!

"Failure is a part of success. There is no such thing as a bed of roses all your life. But failure will never stand in the way of success if you learn from it."

Hank Aaron