Technical Analysis and Research For 10-05-2012
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1- 54 Sessions correction in Falling Channel(Bullish Flag Formation)
2- Testing of 200-Day SMA in Previous months.
3- Forcefully breaking down and last 2 sessions closing below 200-Day SMA.
Conclusions from EOD chart analysis
Long term trend was up during 54 Sessions correction and Nifty could not slip below 200-Day SMA but France and Greece Elections results created that storm which shattered whole Global confidence and all the Global Stocks and Commodities markets crashed,resultant Indian markets also could not be spared and reacted in lines with Global markets and forcefully broken down 200-Day SMA.
Two day closing below 200-Day SMA and sustaining below it will be confirmation of Long term trend turning down.
Nifty-Intra Day Chart (09-May-2012):-
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1- Selling between 5003-5015
2- Support between 4957-4982
3- Consolidation patterns formations in whole day intraday chart.
3- Whole day trading 4957-5015
Conclusions from intra day chart analysis
Sideways trading with lower levels supports and higher levels selling today and sustaining beyond today trading range should be firstly watched tomorrow for next moves confirmation. As whole day intraday chart patterns are showing consolidation formations therefore breaking out possibilities above 5015 are high.
Conclusions (After Putting All Studies Together)
Correction continuation and most crucial 61.8% retracement(4950) has been almost completed after today lowest formation at 4956.45. Following 6 technocal points are showing correction completion indications and Pull Back Rally expectations:-
1- 61.8% retracement completion today.(most crucial retracemet level).
2- Short term oscillators are oversold now.
3- MACD:- Distance in both lines therefore upmoves are required to converge both lines.
4- 54 Sessions correction in Falling Channel(Bullish Flag Formation).
5- Gravestone Doji Bullish Candle formation on 09-05-2012.
6- Consolidation patterns formations in whole day intraday chart on 09-05-2012.
Global markets nosedived after France and Greece election results and Dow Jones is trading more than 80 points down at this moment therefore cooling down and settling of depressed sentiment with global confidence building up is also required for any trend reversal and up moves.
France & Greece Elections triggered Global Markets crash but Indian markets are technically prepared for a Pull Back rally and it may be seen any day. As intraday Consolidation patterns formations seen between 4957-5015 on 09-05-2012 therefore sustaining it beyond should be firstly watched in the coming sessions with Pull Back Rally expectations.