Monday, October 20, 2014

Prices broke out of falling wedge in "Hour", pulling back, would move towards Day channel top..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Prices, taking support " Falling wedge's support line", poised to break-out..

Minor bounce happened @ 100 dsma & from the "Falling Wedge" support & prices closed above "most LEmas" suggesting a pause in downtrend.
Break out point @ 7872 coincides with JNSAR of the day.
As the chart below suggests, prices are most likely to reach the weekly channel bottom and it will happen in stages of falls & rebounds..
ST strength continues above Day.pivot(7774) & Wk.pivot(7811).
Hour chart's "Contracting triangle" with prices oscillating between these two ranges while technicals reaching highly oversold region with +ve divergences poised for a break out above 7870.
Clster resistances are in the region of "7912-28" and then at "7970".
Since the fall from 8180 to 7724 is a 3-wave fall, the retrace could be "any %"..
Know the direction...know the retracement & make the trades..