A year ago I started with this Blog, infact when I started off I never knew I would get this far. Well here I am and still doing pretty okay with my writing and yes improved a lot on my trading too! This is the link to my first post, the one that set the ball rolling!
Enough of self praise let me get back to business at hand; Nifty! The weekly chart below is a picture that would scare many a Bull, what we have between the two (red and blue) trend lines is one helluva triangle of almost a 1000 points, and if all goes well for the bears than this line of action goes something like this 2500 straight down to 2280 straight down to 2200 and then…..eeeks, I am even sacred to write further! The only thing that fails this triangle is if the price closes above the upper (red) line of this triangle making this whole formation a figment of our imagination. Wishful thinking??? Yes pretty much, considering the fact that the 2825/50 zone is the pullback and retest of this formation, both the lower (blue) trend line and the 20 periods MA aligning there. So far we have held well vis a vis the international markets. But one just one close below 2500 will be enough for all the analysts screaming BLOOD ON THE STREET (I bet some have already started screaming!).
The Daily isn’t any different from weekly, we had a small H&S break down and now a retest of neckline at approx 2680 is not ruled out. The blue support line drawn at 2525 is kinda sanctum sanctorum for the BULLS! The overhead resistance is at 2660/80 and finally the 20 periods MA at approximately 2780.
The hourly below has a nice channel enveloping the price action. The 2660 mentioned above is nothing but the channel resistance coupled with the 50 periods MA on the hourly chart. This is the level which should witness some action coz breaking above this is a straight 100 pointer move! A retest of 2570 area is not ruled out infact personally I would like this to be revisited and strengthened before we convincingly try to break the 2660 barrier. Infact any thing below this should be strict stop for longs if any initiated on Friday. Anyway trading would be light and cautious on Monday considering the fact that we have two consecutive holidays on the Tuesday and Wednesday.
"It is never too late to be what you might have been." George Elliot
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