Tuesday, September 4, 2012

WEEKLY CHART BOOK


TECHNICAL VIEW FOR THE SENSEX AND NIFTY FOR THE WEEK STARTING FROM 3RD SEPTEMBER 2012:
I had suggested a STRONG TOPPING PATTERN called HEAD & SHOULDER on monthly charts of SENSEX and NIFTY a few weeks ago
I had clearly pointed out in the article that the process will take some time and CONFIRMATION of the TOPPING PATTERN will be only below the NECKLINE BUT i suggested care for longs
Since NIFTY touched 5442 AND SENSEX almost reached 18000 i said that caution is advised for longs again
And as NIFTY closed below 5378 i repeated and suggested an end to the last few months up move
As per my understanding of charts the 3000 points up move in SENSEX from around may 2012 and 600 points rally in NIFTY does look to be only a BEAR MARKET RALLY
There was no sign of BULL MARKET RALLY at any point of time despite i was giving NIFTY targets of 5378-5442 on the higher side





This chart of SENSEX was posted in my weekly chart book of 30th july 2012 and my comments on the chart is categorical
SENSEX HEAD & SHOULDER AS ON 27-07-2012:






I wrote this on 30th JULY 2012
“  This pattern has the potential to drag SENSEX towards nearly 12000 in the medium term BUT DO REMEMBER that the pattern gets COMPLETE ONLY ON THE BREAK OF THE NECKLINE.
It is a TOP HEAD & SHOULDER.
Also note that i am not suggesting to go short right now as this pattern may take a few more months to unfold also this pattern is developing on MONTHLY CHARTS so we shall have ENOUGH TECHNICAL EVIDENCES on other LOWER TIMEFRAME CHARTS to TIME the CRASH if this pattern is going to complete in the near future. “
Looking the EVENING STAR candle pattern as can be seen on the WEEKLY CHARTS of SENSEX and NIFTY its time to create fresh shorts at weak up move which should start soon
Decisive break which will confirm an end to the last few months up move should come up soon
Level wise a close below 5220 for NIFTY and below 17208 should confirm that the rally was a BEAR MARKET rally only
For the week RESISTANCE LEVELS are placed at 5342 -5359 for NIFTY and at 17600-17712 for SENSEX and if some how both indices can close next week above these zone we will have to have a closer look


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