WEEKLY TECHNICAL VIEW FOR SENSEX & NIFTY :
Both the indices have completed last week closing with a
possible HIGHER BOTTOM and a good CANDLESTICK REVERSAL PATTERN.
Instead of 5096 i would like to shift my PRICE POINT OF
TREND DECIDER TO 5154 on weekly closing basis for NIFTY and to 17003 for
SENSEX.
In short the whole possibility of a HIGHER BOTTOM against
the MAY 2012 LOWS would vanish if NIFTY closes a week below 5154 and if SENSEX
closes a week below 17003.
Because just one HIGHER TIMEFRAME that is monthly chart is
developing a BEARRISH PATTERN called HEAD & SHOULDER as explained last
week.
Also remember that this BEARISH PATTERN gets complete ONLY
on the breach of the NECKLINE but a weekly close below 5154 would be a first
warning.
On a positive note IF NIFTY closes above 5267-5300 and if
SENSEX closes above 17342-17467 there will be further upside potential up to
5378-5442 levels.
MEDIUM TERM PICTURE SUGGESTS “ THERE IS NO TREND “ :
Yes, this is a sad thing that our markets have lost MOMENTUM
of moving swiftly in either direction.
I believe this will be the case till around 2015.
We will have a great buying opportunity coming up in next
1-2 years before the next big bull run starts BUT since 2009 both SENSEX and
NIFTY have actually lost the MOMENTUM and they are virtually DIRECTIONLESS.
THE REASON ?
It is LOW VALUED ADX on all timeframe charts as shown on
these charts
One can how ADX was moving quickly between higher range to
lower range in short periods before 2009 but after 2009 ADX has been moving
gradually down only that is the TECHNICAL REASON for such a dull market
movement.
ADX ON ALL THREE TIMEFRAME CHARTS
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