Tuesday, January 31, 2012

Analysis CNX Nifty with 60 min chart - 31 01 2012 - Support and Resistance

Nifty - 60 Min chart - 30 and 31  Jan  2012

In our ' Looking Forward ' for this week (post here) we opined that "..bears cannot really get themselves into the game unless the price stays below the 34 EMA or in the very short-term, below 5160.."

See above the action on Monday where the price closed below 5160 in the first hour - and proceeded on a Bear run. Today however the Bulls with a gap up persisted below the 5160 mark and post lunch cracked it and immediately shot the index up. Elementary example of resistance and support. Some free reads from the net on that subject, if you care to read 'em, pasted below..

Meanwhile the 200 DMA as mentioned, continues to be resistance and we wait for the US close tonight, to see how the month closes.