Week End Views On Nifty!!!

I had nice little week end with family and friends, now hoping Nifty will treat to an equally good week ahead! Let’s take a peak at the charts and see what lies ahead next week.

First we look at the weekly chart on the extreme right. We have a hammer and we seem to have completed a fib retracement of 161.8% from point A to point B marked on the chart. It indicates (as of the chart this week) we might have made a pivot low for ourselves on the weekly and time for some pullback. On such a scenario the weekly gives us the roadmap as 4050/4160/4250 and for the eternal optimists 4450! For any play on the long side the Stop loss is a few points below the recent low (3848).

Now we move to the Daily chart on the left. We see that we have consistently made Lower Lows and Lower Highs (yes I know we are in down trend!). If we focus our attention to the ellipse I have drawn on the chart, we will see a few interesting things. First of all we have a pivot low followed by a Higher Low. All we need now is to take out the previous Lower High and make ourselves a new Higher High to confirm a temporary shift in the trend to the upside (remember Dow Theory???). Secondly we have an inside bar on Friday (Thursday’s bar is also an Inside Bar). This is showing signs of some coiling waiting to snap in any direction; I suspect to the higher ground because the bias is such. To go long we take the entry on break of the IB top. Incidentally here also 4050 is the main key!

The third chart in the centre is Hourly. Again we have broken a series of Lower Low’s and now waiting to make a Higher High. We have just pecked at the falling trend line signaling some desire to break out. We have a double bottom on the hourly. I suspect that the falling 50 period EMA (blue line) presently at 4075 will provide the price initial resistance and push it back to test once again the comforting hug of the 20 period EMA (green Line) right now at the 3985 where also lies the trend line support.

Rest as they say is QUE SERA SERA!!!