July 12, 2014

Weekend update

On daily charts, nifty has closed at the week's low and very close to swing low support at 7450. Close below 7440 will mean that trend is reversing ... this may mean more corrections or sideways movement.

Note that nifty has shown faster retracement of the last rally... this also points to a trend reversal.

The trend reversal is of help only to those traders who were long from 6400 levels... it means their trailing SL for long positions will get hit should nifty close below 7440 spot. If you were not long from 6400 or 6800 or 7200, then this should mean nothing to you.

Weekly charts: Last week I was happily bullish but this week has negated all the gains. As usual we look for action below 7440 spot.

Notice the engulfing bar formed this week... it has bearish implications

Intraday charts: On 5 min charts, short signal got generated on close below 7550-7540 spot.

On hourly charts, trend is down with SL at 7730 spot.

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