Technical Analysis and Research For 24-07-2012
Nifty-EOD Chart (23-Jul-2012):-
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| Just click on chart for its enlarged view |
1- 578 Points Rally
2- 16 Sessions huge Island Formation
Conclusions from EOD chart analysis
16 Sessions huge Island formation and 578 Points rally reversal confirmation after big Gap down opening on 23-07-2012. Corretion is very much on and may be deeper also because huge reversal pattern confirmation. Next Support ranges are as follows:-
1- 5085-5145(tested on 23-07-2012)
2- 4995-5070
As testing and slipping below above mentioned 2nd support(4995-5070) can not be ruled out therefore firstly following Fibonacci Retracement Levels should be watched;-
Fibonacci Retracement Levels of previous 578 Points Rally(4770-5348)
13.0%-5272(Tested)
23.6%-5211(Tested)
27.0%-5191(Tested)
38.2%-5127(Tested)
50.0%-5059
61.8%-4990
70.7%-4939
76.4%-4906
78.6%-4893
88.6%-4835
61.8% Retracement Level(4990) is most crucial because next support is just above.
As big down moves yesterday and Indian markets are trading between strong support ranges therefore market may be range bound today despite 4990 testing possibility in the coming sessions.