Waves structure and Positive MACD chart
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Waves structure is showing that 5th impulsive wave is on after 4th wave correction completion.
Weekly MACD
Both lines of MACD are near equalibrium line. MACD line is merginally above Average line and equalibrium line.
Weekly Chart from 03-09-2010 to 06-05-2011
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1- 5 corrective Waves of Wave-4 has been completed
2- Corrective 4th wave begun on 05-11-2010 from 6338
3- Corrective 4th wave finished on 11-02-2011 at 5178
4- Continuation Pattern Pennant broken down but weekly closing within Pattern
Conclusions
Wave-4 completed its correction in 5 sub-waves and Wave-5 is on. All trends are down and only hope for survival of Bull market is Continuation Pattern Pennant formations. Nifty moved below 5th wave in previous week but closed above it. Wave 5 is Rising trend line of Pennant and Nifty sustaining above it will mean survival of Pennant and with this hope of up trend as well.
As Weekly closing is above Wave-5(Rising trens line of Pennant) therefore Bull market hopes are still existing and sustaining beyond as well as next weekly closing above/below mentioned line will be next moves confirmations.