TECHNICAL VIEW FOR SENSEX AND NIFTY FOR THE WEEK STARTING
FROM 13TH FEBRUARY 2012:
After five weeks of run away up move both SENSEX and NIFTY
have started to show some EXHAUSTION at higher levels
Both indices has developed a WEEKLY candle which is called as
a DOJI STAR and this candle is a probable REVERSAL PATTERN but looking at the
STRENGTH of the recent BULL RUN we don’t expect a larger fall from here but
there can be a range bound corrective after an initial leg of a little severe
crash.
This corrective should consume more time instead of damaging
prices.
17980 and 5454 are the nearest strong RESISTANCE levels so
atleast a HALT will be welcome.
On Thursday last BOTH SENSEX and NIFTY gave a BREAK above
their small trading range where their was a euphoric up move as if the MISSED
OUT trader too rushed to buy but on Friday the short term range break out
proved a FALSE break AS SENSEX and NIFTY came down sharply and entered back in
to the range.
For NIFTY 5156-5177 was
very tough resistance zone and the FIRST IMPORTANT SIGN of a good TREND
REVERSAL is when PRICE IGNORES such resistance zone.
NIFTY did the same as it gave a very brief correction from
around 5200 and then completely IGNORED the resistance zone.
We had given a NIFTY target of 5435 in JANUARY and in the
last week NIFTY touched 5427 reaching the target.
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