WEEKLY CHART BOOK

WEEKLY TECHNICAL VIEW FOR SENSEX & NIFTY for the week starting 2^nd APRIL 2012.

I did not have much to write about SENSEX & NIFTY in my last weekly report BUT the crux was WEAKNESS

Although I wrote very clearly that a CLOSE below 5177 will extend the weakness which luckily did not happen during the whole weak

Till FRIDAY last there was weakness alright BUT SENSEX was somehow not breaching 17003 and NIFTY was not closing below 5171

During the week the LEVEL OF RESISTANCE came down from 5342 to 5312 and then 5242 and on Thursday BOTH SENSEX & NIFTY breached those important supports at 17003 and 5171 but once again both closed just above them.

Adding to this clue I found a very interesting and VERY POSITIVE PRICE PATTERN CALLED “FALLING WEDGE” and in TECHNICAL VIEW for FRIDAY I had said it will be very positive if NIFTY closes above 5220-5242 levels.

Indeed a VERY STRONG CLOSE on Friday CONVERTING THE WEEKLY CHART PATTERN AS A “ LONG LEGGED DOJI “ and maintaining a good BULL CANDLE as on QUARTERLY CHART too.

So WHAT NEXT ?

This is important BREAK OUT of a FALLING WEDGE pattern and this means that the DOWN MOVE from 5499 to 5131 has ended

There is also a very strong possibility that ONE LARGER A-B-C has also ended at 5131 first A leg was 5630-5171 second B was up from 5171-5499 third C was down from 5499-5131

In the NEXT week watch out 5342 and 5460 because if we get a close above these two TARGETS then NIFTY will enter a STRONG BULL PHASE again and will touch 5531-5649 or even higher.

STOP & REVERSE : A CLOSE BELOW 5171.

we use multi time frame charts to analyse markets very frequently and it may seem that ONE DAY BULLISH market has turned views from bearish to bullish very suddenly but the fact is that since last Friday was not only the week end but was the last day of the month & quarter as well so even on weekly chart we have a probable candle reversal pattern called LONG LEGGED DOJI and on QUARTERLY CHART we have a STRONG BULL CANDLE maintained with the 2% rally on last day.