Friday, October 10, 2014

Despite the intraday rally of 70 points, the trend asserted at "Golden Ratio"...when it mattered the most - EOW.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Prices come under the pressure of weekly weak trend, supported by overbought hour TA...

EOW is here...
Prices have closed below WHEma & WEma but above WLEma and thus in a trading mode; prices, thus, reversed from "WLEma less 60" and came close to WEma-7985. If prices manage to hold the last rise retrace at 7876-94 or 50 dsma-7912, relief rally would continue towards WHEma.
If not, weekly trend would assert itself to take the prices down to WLEma..
Day T/f  reversed up totally, though week is still in trading mode, and thus needs to hold the above said levels to continue with the rally.
If the rise from 7816 to 7972 is "a" wave, the fall from 7972 would be "b" wave, if not the resumption of downtrend..
As the chart below suggests, prices are most likely to reach the weekly channel bottom..
ST weakness returns with hour technicals reaching overbought zone & remaining below "day Channel bottom" & critical MT average 50dsma.