Thursday, October 9, 2014

Prices, on making a falling wedge, has paused with a total green in Day T/F...

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Lowest T/F technicals displayed oversold with +ve divergences for a "pause & bounce"...a relief rally..

Prices have closed below DLEma during "downtrend" gathering momentum & the highs are not sustainable.
Downtrend in Day T/f  yet to gather momentum with week still in trading mode till prices stay above "WLEma less 60" and hour TA turning around with +ve divergences. There will be sharp rises followed by corrective falls till prices hold "7837" which was the 61.8% of last rise from 7816 to 7869.
As the chart below suggests, prices are most likely to reach the weekly channel bottom as long as they are kept below "7950 & 7990".
Minor strength manifested once hour technicals closed above LEma after +ve divergences & attempts would be made to close above critical MT average 50dsma.
(In a trading mode, prices travel from LEma to HEma during corrective rise)
Immediate resistances are 7868-79, above which 50 dsma..& earlier low of 7925.
Supports are 7837, followed by 7795.