I have broken down the Nifty on 2 parameters - weekly and daily. On weekly chart there is a bullish formation. The Nifty is making higher tops and bottoms on weekly charts since June.
The bullish crossover of longer term moving averages confirmed that Nifty is all set to test higher levels. However there is one major concern that needs to be kept in mind - There is a huge supply line on weekly charts between 6182 and 6340. That needs to be broken decisively and sustained. Once that is achieved we can safely say 2013 is going to be a good year. However that is still some way away.
On daily charts if we look at the retracement of current rally even 38.2% has not been retraced which shows the inner strength. However any break below 5760-5808 might lead to a deeper correction. Hence traders should be neutral on Nifty at this point. Close above 5940 for 2 days should be considered as good times to come.
The bullish crossover of longer term moving averages confirmed that Nifty is all set to test higher levels. However there is one major concern that needs to be kept in mind - There is a huge supply line on weekly charts between 6182 and 6340. That needs to be broken decisively and sustained. Once that is achieved we can safely say 2013 is going to be a good year. However that is still some way away.
On daily charts if we look at the retracement of current rally even 38.2% has not been retraced which shows the inner strength. However any break below 5760-5808 might lead to a deeper correction. Hence traders should be neutral on Nifty at this point. Close above 5940 for 2 days should be considered as good times to come.
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