Thursday, July 12, 2012

TECH VIEW 12TH JULY 2012





SENSEX : an INTERESTING broadening channel has been drawn on SENSEX chart
With SENSEX failing to cross 17687 on closing basis even after a big positive candle on Tuesday is not a good sign.
Watch for the LOWER END of the drawn channel to work as support if the down move initiates again.
A CLOSE below 16343 will be the first sign on NEGATIVE MOVE coming up as such a CLOSE will clearly negate the BULLISH SETUP that the up move on Tuesday created.

NIFTY: missing 5378 by a few points on TUESDAY and then not able to produce a follow up move is a cause of concern
But the positives of TUESDAY will be NEGATED ONLY if NIFTY closes below 5255 in a day or two.
STOCHASTIC position is an issue as well , as it is in overbought zone even on WEEKLY CHART.
BROADENING CHANNLE has been drawn on NIFTY CHART and if NIFTY CLOSES below the LOWER END one must liquidate longs.

1 comment:

Bala said...

Sir,

Very good analysis but it shud be 17343 in place of 16343?