Technical Analysis,Researches & Market Outlook(09-06-2011)
Nifty-EOD Chart(08-06-2011):-
Main Features
1- Long term trend is down.
2- Intermediate and Short term trends are sideways.
3- Nifty is trading between 5329-5605 for the last 26 sessions.
4- Pennant Continuation pattern formation in on going correction.
5- Nifty retraced on 25-05-2011 from 5329 after Falling Wedge trend reversal pattern formation.
6- Last 26 sessions(5329-5605) are showing preperation of Inverted Head & Shoulders formations and Right Shoulder is under construction.
7- Neckline of Inverse Head & Shoulders is at 5605.
Conclusions
Last 26 sessions range bound market between 5329-5605. Forceful break out or sustaining above 5605 will mean blating rally and sustaining below 5329 will mean deep dipping.
"Million $ question is left to be replied" that how to understand break out side of 5329-5605. As early final conclusions will be drawn so earlier trading positions can be made in that direction. Above mentioned patterns and technical positions are clear but final conclusions can not be drawn only from them. Technical buying and selling positions will be understood from intraday charts and then key levels,points and formations will be understood.
Nifty formed recent bottom at 5329 on 25-05-2011 and up moves started on 26-05-2011.Since then Nifty is trading narrow between 5450-5605 for the last 9 sessions and intraday charts formations within this range will tell first of all that Nifty is breaking 5605 for blasting rally or will dip toward deep down levels therefore from this date intraday trading positions are shown in following intraday chart:-
Nifty-Micro Analysis of 10 days Intra Day Chart(May 26 to Jun 08,2011)
Main Features
1- Selling between 5545-5604
2- Buying between 5450-5535
3- Buying between 5355-5405
Conclusions
Last 9 sessions most time trading range is 5450-5604 with good resistances at higher levels and strong supports at lower levels also therefore Nifty is not prepared for decisive break out at this moment and expected that Nifty will trade between 5450-5604 in the coming sessions and will prepare for decisive break out.
Conclusions (After Putting All Studies Together)
Following 3 upmoves suggesting patterns in last 26 sessions:-
1- Upmoves begining after Falling Wedge Bullish reversal pattern formations.
2- Upmoves continuation Pennant pattern formations.
3- Inverted Head & Shoulders under constructions.
As above mentioned positive patterns in EOD charts therefore expected that Nifty will finally cross 5605 after some more consolidations between 5450-5604.
Nifty-EOD Chart(08-06-2011):-
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1- Long term trend is down.
2- Intermediate and Short term trends are sideways.
3- Nifty is trading between 5329-5605 for the last 26 sessions.
4- Pennant Continuation pattern formation in on going correction.
5- Nifty retraced on 25-05-2011 from 5329 after Falling Wedge trend reversal pattern formation.
6- Last 26 sessions(5329-5605) are showing preperation of Inverted Head & Shoulders formations and Right Shoulder is under construction.
7- Neckline of Inverse Head & Shoulders is at 5605.
Conclusions
Last 26 sessions range bound market between 5329-5605. Forceful break out or sustaining above 5605 will mean blating rally and sustaining below 5329 will mean deep dipping.
"Million $ question is left to be replied" that how to understand break out side of 5329-5605. As early final conclusions will be drawn so earlier trading positions can be made in that direction. Above mentioned patterns and technical positions are clear but final conclusions can not be drawn only from them. Technical buying and selling positions will be understood from intraday charts and then key levels,points and formations will be understood.
Nifty formed recent bottom at 5329 on 25-05-2011 and up moves started on 26-05-2011.Since then Nifty is trading narrow between 5450-5605 for the last 9 sessions and intraday charts formations within this range will tell first of all that Nifty is breaking 5605 for blasting rally or will dip toward deep down levels therefore from this date intraday trading positions are shown in following intraday chart:-
Nifty-Micro Analysis of 10 days Intra Day Chart(May 26 to Jun 08,2011)
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| Just click on chart for its enlarged view |
1- Selling between 5545-5604
2- Buying between 5450-5535
3- Buying between 5355-5405
Conclusions
Last 9 sessions most time trading range is 5450-5604 with good resistances at higher levels and strong supports at lower levels also therefore Nifty is not prepared for decisive break out at this moment and expected that Nifty will trade between 5450-5604 in the coming sessions and will prepare for decisive break out.
Conclusions (After Putting All Studies Together)
Following 3 upmoves suggesting patterns in last 26 sessions:-
1- Upmoves begining after Falling Wedge Bullish reversal pattern formations.
2- Upmoves continuation Pennant pattern formations.
3- Inverted Head & Shoulders under constructions.
As above mentioned positive patterns in EOD charts therefore expected that Nifty will finally cross 5605 after some more consolidations between 5450-5604.