Thursday, June 25, 2009

Nifty Technical Analysis For June 25th

Yesterday’s Recap (June 24th):
Nifty opened near June 23rd high, which is inside the up sloping Channel. After opening it showed weakness and started drifting down and threatened to breakdown from the Channel. It gave false breakdown with low volumes, but the breakdown was very small can be considered as minor error. Then price took support form the support line of the Channel and moved just above support line to sustain. At mid of the day it zoomed up and broke the Ascending Triangle resistance line with volumes but it stayed inside the Channel till the end. Below is the 5 min chart of Nifty Futures:


Cues For Today (June 25th):
As I already mentioned longs could be hold with Ascending triangle's support line as stop loss, and Nifty broke the resistance trend line yesterday convincingly and successfully retested it.

On the higher side, Channel resistance is now at 4330/4340 levels (moves up by time). Bearking that may take Nifty to 4390/4400 levels. If 4400 levels are broken convincingly then it may reach the resistance line of the Expanding Triangle!!

On the lower side now Nifty formed good number of support zones
  1. Upper line of Ascending triangle at 4278
  2. Support Line of Channel
  3. Gap Support at 4160, may not break today.
  4. Support Line of Expanding Triangle, which is too far, may not reach today.
For today channel support and Ascending Triangle Resistance line fall nearby which may become good support zone for Nifty. If it is broken down the Nifty may show weakness. On the overall Nifty may show some strength today ,if it breaks above the channel resistance line. Below is the 20 min chart of Nifty Futures:

2 comments:

Ilango on June 25, 2009 at 10:13 AM said...

Hi..Doji,

Take it easy..You want to run the marathon, watch out for the "burn out syndrome". Make sure the pace is comfortable enough to enjoy the journey as well as make money.

Listen to everyone..But do only what you feel right. Don't explain and don't complain...

Best regards.

ilango

Doji (Blog Author) on June 25, 2009 at 11:13 AM said...

Thank you ilango sir. Right advice I needed a the right time. Thank you very much.

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