Monday, September 10, 2012

WEEKLY CHART BOOK






WEEKLY TECHNICAL VIEW FOR SENSEX AND NIFTY:
There were two important points that i described in my last two WEEKLY CHART BOOKs
 one was my anticipation that the DOWN MOVE started from 17972 in SENSEX and from 5448 in NIFTY seems to be the FIRST LEG of a fresh and bigger down trend to follow next
 second despite the above analysis i had suggested a very clear TREND DECIDER ZONE of levels for NIFTY which was 5260-5220 and for SENSEX my TREND DECIDER LEVEL was 17292

My first assumption of a FRESH larger down move seems to have proven WRONG at this stage but the last two days STRONG up move came EXACTLY from my TREND DECIDER levels
SENSEX made a LOW of 17250 but closed above 17292 and NIFTY made a low of 5215 but closed above 5220 on the day both touched those CRUCIAL LEVELS
Also i was pointing clearly at one CORRECTIVE bounce from these supports here too my anticipation of small up move wet wrong as there is a very STRONG bounce
But again a CLOSE above 5300 and 5342  already suggested a STRONGER up move coming up
For the NEXT WEEK:
Unless the BULLISH GAP between 17575-17418 is broken one can not think bearish for SENSEX and for NIFTY this GAP is between 5260-5309
two supports have worked for the SENSEX one was the TRENDLINE which was drawn almost a month ago and the the BULLISH GAP support as i did mention 17292 as the most important TREND DECIDER LEVEL.

But my assumption of SLOW upside was wrong footed.
Unless SENSEX closes again below the recent BULLISH GAP at 17575-17418 no shorts are advised.
17972-18000 is a STRONG resistance zone so first we will watch these levels and then we will analyse the move
: it is ok to say that NIFTY moved up smartly once my RESISTANCE at 5300 was crossed and there was much stronger move once NIFTY crossed another hurdle at 5342-5359 BUT my technical view of slow correction to come was wrong footed.
This upmove of only two days is much stronger for NIFTY
First warning for bulls will be if NIFTY closes below 5342 next if NIFTY closes below 5300 but fresh shorts only if NIFTY closes below 5215
5448 and 5489 are upside targets if NIFTY sustains above 5342

As on the WEEKLY CHART there was no BEARISH FOLLOW UP of the evening star pattern so if NIFTY can manage a close above 5442 for this week it will be further bullish



2 comments:

Bala said...

Sir!

Very good analysis again & biggest thing is that you are accepting "your observation or analysis gone on wrong foot". I really salute you for your down to earth nature, you are really great human being.

Stockchart said...

thanks
but for a number of valid reasons, i kept this one liner lesson of my life as a header of my blog " Here i am trying to time the market, using some innovative technical tools,acepting by heart that market is supreme,i always have to follow it"