It's been a while since i blogged but the movements in NIFTY today inspired me to write a quick post. Not that I had expected the exact same movements but was quietly confident of the direction based on the charts. Whats amazing is the way the Geometries are at play in the Markets just that we sometimes get swayed or biased with noise (read noise as news). Anyone still wondering what the news is - can read it here.
Lets quickly dive to the charts.
NIFTY on Weekly Time Frame
NIFTY took 13 months to break out of the Descending Triangle (Nov'10 to Dec'11). Once it did it faced resistance at the Rising trendline of the previous bull run (From Mar'09). Today the NIFTY touched the Descending Trendline support & has bounced significantly indicating that 4988 is critical level. Also the 61.8% retracement level for NIFTY (From the rise of 4530 to 5630 comes around 4950 & 50% retracement levels are 5080. A closing above 5080 today is a good sign so now on weekly charts once we move above 5250 (Refer to the next chart) we are well on our way to 5700 levels again.
NIFTY on Daily Time Frame
NIFTY is again in a sort of Descending Triangle of its own after its breakout in early Jan'12. Today after making a low of 4988, NIFTY has given a close above 5100 levels & is tad below the 200 Day Simple Moving Average. (200 Simple Moving Average is 5114.97 & NIFTY closing is 5114.15).
As the geometries suggest (encircled in the charts) the next move would be towards 5250 & a breakout would lead the indices higher to 5500 levels & to 5700 in next few months (Probably a quarter).
Let me know what you think of this post.
Vats wat about noise of Euro zone?
ReplyDeleteAnu,
ReplyDeleteDuring majority of times Such things would always continue to be there. Earlier the spotlight was on Greece, now slowly the attention is shifting to Spain. Over the years I've learnt one thing that if one is believer in charts; more often than not it would warn of any calamity in advance. We should have our eyes open to see it (Without any bias)