So we did have our little pullback. But this was after much mid day drama. Nifty opened flat. We took our first swipe at 4620/30 level (roles reversed the support till yesterday became resistance for now). After the second failed attempt to penetrate we tested the days low and then broke below and proceeded to make a new low for us. Incidentally this was happening when news of Prime Minister resigning were flying thick in various chat rooms and forums. This created a panic among the retail traders and the professionals had a field day in their fishing expedition. This particular move kicked both the weak shorts and weak longs. With a positive cue from European market, Nifty proceeded to complete an inverse H&S and finally broke out of the 4620/30 congestion to close on the higher ground. On the daily chart we can call this a Piercing Candle and for the people who follow bar charts this can be termed as Positive Reversal bar. The low of this bar assumes a lot of significance as any negation of this bar will lead to a severe fall. A retest of 4620/30 is not ruled out for tomorrow. On the up side we have strong resistance at 4730/70. It might be a volatile session and much awaited Inflation figures at 12 p.m. will set the tone for the day.
"Do not confuse motion and progress. A rocking horse keeps moving but does not make any progress."
Alfred Montpert
Is this just a motion in nifty or progress????
4 comments:
who says no two minds think the same. While I was reading your post, I could feel that my analysis matches line to line with yours. Nice to get a analysis confirmation signal from your blog.
Satya
You are inline with my analysis too
Posibily a bearish star could be a needle to ends this bubble moving upwards.
Rajandran R
Did u noticed 200min EMA is lower than 3 min, 13min, 50 min EMA
Satya and rajandran
hey guys now you scaring me,if we three are thinking on the same line then that makes us the crowd and I am very afraid to be a part of the crowd....lols keeping my fingers crossed on this one!
Post a Comment