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Sunday, December 11, 2011

Nifty: Week ending - 09th December 2011.


Recap : Refer posts from last weekend (3rd Dec'11) - With the Nifty above the 34 EMA last weekend, we had anticipated a move to our red channel line.. we also expected ranging which happened .. our Intra-Week post of 7th Dec'11, indicated that Bears could make a dash for the Fib61x - which is precisely where the Nifty ended by weekend... 


The Charts...


End of  Day Chart 
Nifty - End of Day Chart - 09 12 2011
Nifty End of Day Chart: Nifty ended on the Fibonacci 61.8% of the 2008 low to 2010 high...as one can see quite a watering spot for the Nifty in recent time...note the range indicated by the arrows...


Nifty - End of Week Chart - 09 12 2011
Nifty End of Week Chart: We see that there is a Bearish Harami in place...in direct contrast we have the indicator taking support on the resistance line...back to class...more about the candle pattern and how to trade it here...


http://thepatternsite.com/HaramiBear.html
http://www.traderslog.com/bearish-harami-weekly-candlestick/


Nifty - End of Month Chart - 09 12 2011

Nifty End of Month Chart: Notice that the Bullish Harami we saw last week disappeared...5 EMA continues to be resistance at which this month is fighting.. a pullback to the green channel line is still a possibility... 


Looking Forward: We analyzed the SP 500 earlier today, we saw the contra signals that this week's study has given us...Currently Nifty is in a Bear mode but on a decent support line... One sees the Nifty ranging as indicated on the Day chart.. based on how the rest of the world opens up we shall take a directional call later in the week...



S&P - End of Week - 09 Dec 2011

SP 500 - End of Week Chart - 09 Dec 2011


The Falling channel formed by the Weekly candles since May 2011, is depicted above...let's look at the last two candles....we have a critical resistance line that the next week's candle needs to fight, to keep the Bulls in business...we also have the possibility of a Evening star formation - if next week's candle opens below this week's candle - as a student of the markets let us then use this excuse to study this pattern at the link below...


So watch out for that resistance line and candle formation....peace!