Last week Candle is Bullish Hammer after lower levels buying while before last week candle was Shooting Star/Gravestone Doji Bearish after higher levels selling.
Supports and Resistances of last 16 sessions are as follows:-
1- Strong support within 5985-6030
2- 1st Resistance Range is- 6110-6145
2- 2nd Resistance Range is- 6160-6180
4- 3rd and Last Resistance Range is- 6220-6245
1- Support & Resistanced Chart:-
Market is trapped within strong supports at lower levels and strong resistances at higher levels and has entered into Range bound mode within 5932-6284 and will prepare for next moves within this range. 6040-6145 is 1st trading range of next week.Supports within range are 6040-6060 and below it strong support range is 5932-6030. Resistance range within this range is 6100-6140 but above is resistances are not strong and only last resistance range 6220-6245 is little stronger.
Correction started after Rising Wedge formations and Coming week will decide that the correction has finished after Bullish Hammer formation last week or not. On going month is Quarterly Results month and it is the trend that achual results season starts from INFY results and finish after RIL results. This has to be kept in mind that this week is derivatives expiery week and RIL results will be declared on 30 OCT 2010(Saturday),market is indecisive mode and will prepare whole week within 5932-6245 for real moves in next month.
Bearish Rising Wedge and Bullish Flag Formations in last 21 sessions:- EOD chart has clearly shown Bearish Rising Wedge and last 6 sessions are showing Bullish Flag Formations.Rising Wedge implications has been written in last week and I am showing with proofs Bullish Flag implications from my following topic in my forums and Blog:-
NIFTY NEXT TARGET IS 6000
Weekly Analysis-05 Jul to 09 Jul 2010
When previous closing was at 5237 then I told following lines in this topic which name was "NIFTY NEXT TARGET IS 6000":-
1- Nifty will shoot up like bullet after crossing 5450 because no resistance upto 6000(In Technical View-3)
2- A Flag(Bullish) follows a steep nearly vertical rise( In Flag Formations in Daily Chart:-)
All very well remember sharp rise within 5500-6000 in last month and my projections for sharp surge and Bullish Flag can also verified in any of my forum and Blog.
2- Rising Wedge and Flag Formations Chart:-
Conclusions:- Coming week will first trade within 6040-6145 and will give first indication that correction has been completed in last week or not. It is obvious that crossing 5140 will mean correction complete and very much chances of testing last resistance range(6220-6245). Breaking of 6045 will mean testing possibility of 5932 but supports below 6030 are strong therefore complete selling formations are required to test 5932.
Firstly from intraday charts and after ward from forceful break out of 5932-5245 will give next moves confirmations. Markets takes its complete time within ranges for preparing of next moves and let it complete its process then final view will be formed accordingly. In the end 2 cautions for range bound moves:-
1- Sentiments remains at peak at the top or at the bottom of range and keep in mind also that market may reverse also from here therefore trade with patience at those points.
2- Forceful break out is must for range break out confirmations.