Nifty Chart - Daily:
Nifty formed an Ascending Triangle pattern in Daily charts. But, the breakout of the previous highs (resistance) is not very convincing to launch fresh longs and start expecting more upward move. Low volumes reflect week supply and not strong demand. Its wait and watch period in my view. I am hoping that after some up move, market would come back for a re-test of this resistance line (around 4760-4770). A break out or breakdown from the re-test levels may lead the trend. This point may be a safe entry for fresh longs or even for shorts on a breakdown, which may convince this up move as a false breakout.
Sensex Chart - Daily:On the contrary, Sensex has formed a Raising Wedge, which is bearish. If the resistance line is broken up, then wedge would be invalid. Interesting times!
8 comments:
Hello doji, I have been a follower of your site for the past two months. your analysis and explanation is very useful. Can i get my doubts on technical analysis from you?
Hi Doji,Even we can see raising wedge on nifty too.As u said its better to wait and watch.
Hello doji, I have been a follower of your site for the last month.
Today morning i read comments on Nifty it is perfect analysis. I like it.
Thankx Good Day.
Chhaya
What a time u have posted??? oops..
Thank u very much for the early updation and hats off to your good work.
As a small player I am waiting for a down trend, scary to go long at this level, waiting and watching as u said..
Regards
Hi Doji,
This also seems to be a reasonable setup for a Wolfe Wave, although the symmetry is not that good.
I am not sure how to interpret today's gap up as we approach 'point 5' on the WW, its a bad thing to have i guess.
Whats your take on this, 'Gap ups as we are approaching point 5 on a bearish WW', Good or Bad ?
Regards,
Manu
Is sensex broken it's resistance? Wedge valid still or invalid?
Thank you satheesh, Chhaya, Moneyvistas
Hi sujatha
Wedge didn't get invalid just now. But till it holds the gap it is good for bulls. Also we need to observe price and volume action carefully here. Also, this wedge is not tradeable, its in sensex. Just for the market cues.
Hi manu
This not a Wolfe Wave. But on hourly charts there is one, which is also not perfect. Also, not having volumes data is another setback looking for volume sensitive patterns in sensex.
PS: DLF is about to hit the first target of 411 :)
How strong is the market? can we maintain our long positions or can we exit at this range? how long can we wait? Is there a messenger ID to chat with you online or should I post only in this blog? If I could chat online then maybe I can learn a lot from you!-Satheesh
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