Technical Analysis,Research & Weekly Outlook
(Apr 16 to Apr 20,2012)
Nifty-EOD Chart(13-Apr-2012):-
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| Just click on chart for its enlarged view |
1- 4531.15 on 20-12-2011(Rally bottom)
2- Wave-1 top at 5629.95 on 22-02-2012
3- Corrective Wave-2 bottom at 5135.95 on 29-03-2012(Correction bottom got support just below 200 Day SMA)
4- Two times support at 200 Day SMA in on going correction.
5- Wave-3 beginning from 30-03-2012 but its confirmation is required
6- Bullish 'Flag Pattern' Pattern Formation(Falling Channel) in on going post 22-02-2012 correction.
Conclusions from EOD chart analysis
Long term trend is up,Short term trend turned turned down after Sharp fall on 13-04-2012 and Intermediate term trend is sideways in on going correction. Firstly weekly top formation and after that weekly bottom formation seen on 13-04-2012 after higher levels good selling.
36 sessions correction. Resistances and Supports within this correction are as follows:-
Resistances:
5- 5588-5625
4- 5418-5487
3- 5357-5377
2- 5318-5337
1- 5275-5305
Supports:
1- 5175-5236
2- 5136-5167
3- Two times support at 200 Day SMA in on going correction and 200-Day SMA is today at 5145.
Correction is very much on after higher levels intraday selling and sharp fall on 13-04-2012. As above mentioned first support has been tested and no support getting confirmations yet therefore firstly above mentioned supports should be watched and any decisive up move will be considered after complete support formation confirmations.
Bullish 'Flag Pattern' Pattern Formation(Falling Channel) in on going post 22-02-2012 correction therefore expected that finally rally above 5629.95(Wave-1 top) will be seen after completion of correction. As strong and multiple resistances at higher levels therefore complete consolidations and base formation is required for a decisive rally.
Next week first trading range will be 5136-5275. Sustaining below 5136 will be deeper correction confirmation and sustaining above 5305 be first indication of correction completion.