Friday, May 24, 2013

Nifty - Technical Update

  1. Nifty has reversed from an important resistance zone. 
  2. Prices have met with supply in this zone twice before this weeks price action.
  3. Big bearish engulfings, have resulted in sustained down moves, and this time time too it may turn out to be the same.
  4. Since this is the turning point, understandably, people, traders, investors are torn between bullish and bearish arguments, and, interestingly both would be equally impressive at this juncture.
  5. But a big bearish engulfing in an establshed supply zone, with RSI -ve divergence and higher prices with falling volume, all indicate towards at least a temporary top in place.
  6. The rising wedge is unmistakable and so would be the aftermath, if it plays out.
  7. I would again like to state the obvious, that, should prices resume their upmove and take out the supply zone marked in the chart above, we should see even higher prices.

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