Nifty-EOD Chart(08-Jul-2011):-
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1- Started on 03-11-2009 from 4538
2- Nifty got support on it 7 times in last 20 months
3- Rising Trend Line broken down but moved above it sharply
4- Continuation Pattern Pennant Formations.
5- Falling Trend line of Pennant.
Conclusions
Nifty got support 7 times in last 20 Months at rising trend line. Although Nifty slipped below it after 'DTAA renegotiation' news in June 2011 but again moved above if after 4 days consolidation below it therefore mentioned rising trend line is very much intact and indicating up trend in Indian markets.
Corrective Wave-4 begun on 05-11-2010 from 6338 and Wave 5 started on 11-02-2011 from 5178. Last 8 months pre-correction and post-correction pattern is big Pennant which is continuation pattern. As larger trend is up therefore Continuation Pennant Pattern formation is also an indication of uptrend.
Nifty tested falling trend line of Pennant in 2 previous sessions and sustaining above it will be confirmation of next Bullish phase. Expected that Nifty will finally sustain above it and fresh up trend will be seen after possible correction in the beginning next week.