Nifty-Intra Day Chart (Aug 19 to Aug 22,2014):-
Technical Patterns and Formations in last 4 Sessions intraday charts
1- Selling between 7898-7919 in first 3 sessions
2- Supports and consolidation between 7856-7891 in first 3 sessions
3- Selling between 7916-7929 on 22-08-2014
4- 4 Sessions actual trading between 7856-7929
Nifty traded 49 sessions between 7423-7840 and this range broken out on 18-08-2014 but its broken out confirmation was required because break out was without required force and whole day up moves were slow on that day. Technically valid break out confirmation is derived through:-
1- 3% up moves the top of previous range(7840) or
2- 3 sessions sustaining above the top(7840) of previous range
Although Nifty closed well above the top of 49 sessions range(7423-7840) in all the sessions of previous week but as such consolidation not seen and selling patterns were also in last 4 sessions despite weekly closing is near the top of week.
All trends are up and Bullish rally is very much on but indicators are showing negative divergence in Overbought zone as well as selling patterns formations were also seen in last 4 sessions intraday charts therefore emergence of Short Term correction possibility before next decisive and strong rally above life time high(7929).
View is watchful and cautious as well as until fresh consolidation will not be seen in the beginning of next week till then sustaining above life time high(7929) will not be considered and possibility of reentering into previous 49 sessions range(7423-7840) will remain alive.
Firstly sustaining beyond last 4 sessions(7856-7929 should be watched in next week for:-
1- Short Term correction possibility below 7856
2- Fresh strong rally possibility above 7929
 |
| Just click on chart for its enlarged view |
1- Selling between 7898-7919 in first 3 sessions
2- Supports and consolidation between 7856-7891 in first 3 sessions
3- Selling between 7916-7929 on 22-08-2014
4- 4 Sessions actual trading between 7856-7929
Conclusions from 4 Sessions intra day chart analysis
Nifty traded 49 sessions between 7423-7840 and this range broken out on 18-08-2014 but its broken out confirmation was required because break out was without required force and whole day up moves were slow on that day. Technically valid break out confirmation is derived through:-
1- 3% up moves the top of previous range(7840) or
2- 3 sessions sustaining above the top(7840) of previous range
Although Nifty closed well above the top of 49 sessions range(7423-7840) in all the sessions of previous week but as such consolidation not seen and selling patterns were also in last 4 sessions despite weekly closing is near the top of week.
All trends are up and Bullish rally is very much on but indicators are showing negative divergence in Overbought zone as well as selling patterns formations were also seen in last 4 sessions intraday charts therefore emergence of Short Term correction possibility before next decisive and strong rally above life time high(7929).
View is watchful and cautious as well as until fresh consolidation will not be seen in the beginning of next week till then sustaining above life time high(7929) will not be considered and possibility of reentering into previous 49 sessions range(7423-7840) will remain alive.
Firstly sustaining beyond last 4 sessions(7856-7929 should be watched in next week for:-
1- Short Term correction possibility below 7856
2- Fresh strong rally possibility above 7929