Another month, another very good month comes to an end (albeit it looks like a hanging man as of now on the monthly chart)! Below is the weekly chart of Nifty and as we can see there is yet another attempt to break out from the 4000/4700 range. This will need a greater push and all round participation to make it a strong breakout because of the negatives it faces. First of all at 4800 we have 61.8% fib of the Jan 2008 highs to March 2009 lows! The RSI below is beginning to diverge from OB levels which it had not witnessed for a long long time on the weeklies!
A break above 4800 might immediate spurt another 200 points rally; similarly if not able to hold to 4625/50 then we might get the same quickie of at least 200 points to the downside!