Sunday, February 14, 2010

monday will decide very short term trend













nifty has to move in either direction from monday. it cant remain in such a small range any longer.
if it decides to move on the upside ,,i presume it will be only a RANGE EXPANSION for the short term...than the broad range could be 4650--5015..but if nifty cant move up than another test of 4665 or even 4536 is sure in the coming week.

i wrote here a few days back..that if nifty has to move up..it has to do it in a few days..after that there was one big down day and another gapped--up up day.so i feel monday will decide the very short term trend.my resistance levels were 4832---4842 are still intact.
if the short term up move from 4665 was only a gap filling activity and if we start falling again,,it will have severe bearish implication in short term...before a meaning full upside correction(of the fall from 5310)..starts.....i some how feel that we are yet to see one severe down day.
interesting observation is that..on wednesday we have seen selling pressure twice intraday from around 4820--to---4740..but since thursday was gap-up day..there wasnt actual buying force on that upday.

my stoploss for this presumed down day...will be a strong up move on monday..and a close above 4855.

i am here posting a few hourly charts..where in trend decisive structures are presented in some leading stocks.

for nifty..last few days hourly chart suggests a bearish rising wedge..if broken we may see a break of 4665...where as on nifty 4900 call..there is a rectangle on hourly charts...which can be highly bullish if broken out.

so, two things are clear...for stocks wait for break of patterns and for nifty mondays close could be a decider of the short term trend.

for a little longer term trend...i think we are getting more confirmation about a significant top already in place. i am posting charts of few leaders with 21 ema on weekly charts...in most of the major stocks....its a confirmation that we will see a lower top formation,,whenever a meaning full correction on upside starts.

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