Nifty 50: Medium Term View (or) Week Chart, each candle is 1 week's price action (or) EOW Chart:
|CNX Nifty 50 - End of Week (EOW) Chart - 08 May, 2012.|
The Nifty started Trending downwards, last week (click).
Our Weekend analysis (click) showed on the EOW, an 'Old Resistance line' as the bottom end of the range for the week.
See same in blue circle, in the EOW chart above (touching the last candle).
This line has been the resistance, which the Trending Bears met up with, like a long lost friend, for the last two days...
Break of this line which was resistance for 13 months and is now a support for last 5 months - is an event which can change the market sentiment !
Nifty 50: Short Term View (or) Day Chart with closing prices in a line graph (or) EOD Chart:
|CNX Nifty 50 - End of Day (EOD) Chart - 08 May, 2012.|
On the EOD, we saw the Bears fall below the 200 DMA on Monday and pull back to it.
Tuesday saw the Trending Bears continue their act - yet to reach our range bottom on this chart.
Reaching the Fib 61x should be a breeze - only if the above Support is broken ... so look out for that old friend :)