Nifty had done practically Nothing all through the last week, infact take a look at the last weekly bar and you will know what I mean by Nothing! So far we have just avoided falling in tandem with SNP/DOW but I really wonder how long will we hold on our own. The broad weekly range is shaded in blue. I have very often commented that whenever the price stretches to far away from the MA’s, it always reverts to the mean or moves sideways so as to enable the MA’s to come to a strikeable distance which further enables a valid crossover or generates a reaction. I have illustrated this in the weekly chart below. By the way all through last week we were talking about 2850 as a resistance to reckon with, well the 20 periods MA on the weekly is right about there!
Like I mentioned earlier nothing in particular to write about Nifty, the levels it seems are very clear 2850 and 2700 for bullish and bearish bias respectively. The daily shows the coil which is almost defunct now since we have moved to close to the apex, while we have the 20 and the 50 period MA’s almost placed horizontally overhead to provide adequate resistance.
The hourly is self illustrating chart, nothing to explain in there, the resistances are already marked with fibs and MA’s. And as regards to supports the less said the better, coz frankly speaking there isn’t just any REAL support. Personally I wouldn’t be comfortable trading Nifty right now but for people who are positional long 2680/2700 is a good place for Stops!
"Nothing great was ever achieved without enthusiasm." Ralph Waldo Emerson
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