Friday, May 29, 2009

VIEWS FOR 29-05-2009

Supports: 4272 below that 4244-4212 is possible.
Resistances:Above today's high 4310-4336-4356/62, above this 4391-4419 is possible.

Those were the levels for yesterday. And recorded for the day,
High: 4258.8
Low: 4270
Made 4355 at first and came down to 4311 and blasted to 4358.8.
That too after Dow closed near 200 points down.
Picture perfect. This much I can say about the Nifty movement.

Friends today I am going to post a interesting chart. Take a look...

Watch closely. Blue Channel is the main path for Nifty. Inside that the movement is again sub-divided by two sub channels which are identical. Price broke out from the first sub channel and hit main channel's upper band. Then once again a formation of sub channel (red) took place. Of course identical to the previous (turquoise) one. Inside the sub channel the price movements are proving to be identical also. Enclosed in the pink boxes symbolizing that fact. So can we say nifty is exactly behaving in the same way which it did in its last move? Yes we can. Now the price projection. See in the first break out, it did hit exactly 1.618 extension of the previous move, and that was confirmed by the hit at main channel (blue). Let us project in this case also, and where it's hitting? 4426 is the place. Can anybody remember what was the level we discussed about above 4356/62? See the first line of this post. It was 4419. So once again 4420 zone is getting confirmed. And after that? Another sub-channel? Further expansion and extension with greater speed? Corrections? Will take that later on. But above 4365, 4420 looks valid now. Above that more bullishness. So for this expiry,

Supports: 4312-4270, below that it can come down to 4244-4221
Resistances: 4356/62, use 4370 for confirmation. Above that 4391-4420/27.
Once above 4370, 4365/56 will act as important supports.
That's all friends!! Please don't have a great expiry as I can't say that. Lolzzz. Have a great trading day and weekend.
(All Future levels, 15 minutes chart attached)

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