Weekly Outlook(25-04 to 29-04-2011)
Wave-5 is on,all trends are up,Long term indicators are cooled down after Wave-4 correction. Short term indicators also chilled after previous week finished 38.2% 'ABC' correction(Sub Wave-2 of Wave-5)
Corrective Wave-4 and Wave-5 Corrections are as follows:-
1- 3rd impulsive wave begun on 13-07-2009 from 3919
2- Wave-3 finished on 05-11-2010 after gaining 2419 Points
3- Corrective Wave-4 started same day and loose 1161 Points.
4- Wave-4 finished on 11-02-2011 at 5177
5- Impulsive Wave-5 started same day and its Sub Wave-1 started 'ABC'correction from 5944 after 767 Points Rally
6- 38,2% 'ABC'correction completed at 5693 after loosing 251 Points.
1-completion of Corrections Chart
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Conclusions
Market is in up trend and and EOD chart is showing Pennant pattern formation in its corrective move which is continuation pattern. It means continuation of on going trend because it is not a trend reversal pattern but trend continuation pattern. As on going trend is Bullish therefore its continuation expected after Pennant falling trend line upward intersection in the coming weeks.
Most important development 3 week before that MACD line upward intersection of Average line and it is confirmation of rally. Weekly MACD cross over gives confirmation to long trend therefore strong confirmation to up trend 3 weeks before. Both lines started to move up near equilibrium line and MACD line has moved it above therefore it is strong indication of rally in the coming week.
It is clear from Nifty-Micro Analysis of Intra Day Chart(21-04-2011) higher level selling and lower level buying therefore mixed patterns on 21-04-2011 and Indian market require more preperation for any side sustained moves and that will be done near 21-04-2011 range(5864-5912) on Monday.
As resistance range and some higher levels selling on 21-04-2011 therefore minor intra day or very short term down moves or correction may be possible in consolidation process but finally market will move up in this week and also very much expected that Nifty will cross immediate resistances and sustain above as well.
Indian markets are well settled for strong rally toward minimum 6120 and expected also in this week. Rally confirmation level is sustaining above 5940.