Technical Analysis,Research Weekly Outlook
(Oct 22 to Oct 25,2012)
Nifty-EOD Chart (19-Oct-2012):-
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Technical Patterns and Formations in EOD charts
1- Sub Wave-4 of Wave-3(5215.70 on 05-09-2012)
2- Sub Wave-5 of Wave-3 (5815.35 on 05-10-2012
3- Sub Wave-5 gained 600 points strong rally in 21 sessions from 05-09-2012 to 05-10-2012
4- 19 Sessions sideways trading between between 5639-5733/5756
5- Last 10 corrective sessions trading between 5639-5733 from 08-09-2012
6- Long Term trend decider 200-Day SMA at 5257
7- Long Term trend decider 200-Day EMA at 5307
7- Correction in previous 2 weeks.
8- Weekly Doji Candle formation in previous week.
9- Bull Bear Tussle between 5639-5756 in last 4 weeks.
Conclusions from EOD chart analysis
21 sessions 600 points strong rally from 05-09-2012 to 05-10-2012 but its correction is very much on from the last 10 sessions and most time sideways trading between 5639-5733. Long Term and Intermediate Term Trends are up and Short Term Trend is sideways through 19 Sessions most time sideways trading between 5639-5733. It is confirm that big moves are being ripe in last 19 sessions between 5639-5733 but higher levels good selling and lower levels strong supports within this range therefore Indian markets are not prepared for any side decisive big move.
Nifty-EOD Chart (19-Oct-2012):-
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| Just click on chart for its enlarged view |
Technical Patterns and Formations in EOD charts
1- 4770.35 on 04-06-2012(Wave-2 completion and Wave-3 beginning)
2- 5348.55 on 10-07-2012(Sub Wave-1 of Wave-3)
3- 5032.40 on 26-07-2012(Sub Wave-2 of Wave-3)
4- 5448.40 on 23-08-2012(Sub Wave-3 of Wave-3)
5- 5215.70 on 05-09-2012(Sub Wave-4 of Wave-3)
6- Sub Wave-5 of Wave-3 completion at 5815.35 on 05-10-2012
7- 10 Sessions sideways correction between 5639-5733.
8- 19 Sessions most time trading between between 5639-5733 near the
Conclusions from EOD chart analysis
'ABC' correction of Wave-3 is also due after its Sub Wave-5 completion at 5815.35. Deeper correction confirmation after sustaining below 5639 will mean 'ABC' correction possibility to correct whole Wave-3 rally from 4770.35 to 5815.35.
Conclusions (After Putting All Studies Together)
Sub Wave-5 of Wave-3 completion confirmation and its correction is continued through 10 Sessions sideways trading between 5639-5733. Certainly big moves possibilities have also emerged after last 19 sessions sideways moves between 5639-5733 but technical positions within this range are quite balanced because good selling at higher levels and strong supports with intraday consolidation seen at lower levels in last 19 sideways sessions.
As good selling seen at higher levels last Friday therefore slipping below 5639 can not be ruled out in the beginning of next week but sustaining below is must for deeper correction confirmation with 'ABC' correction possibility.
Final break out of previous 19 Sessions most time trading range(5639-5756) should be firstly watched next Monday because that will give confirmation to following decisive moves:-
1- Sustaining above 5756 will mean rally continuation after completion of sideways correction.
2- Sustaining below 5639 will mean deeper correction with high possibility of 'ABC' correction of Wave-3
