Dear Members,
As you can see in the attached chart Nifty topped @ 6338.50 on 05-Nov-2010. Nifty was trading in range of 6200-5800 for a while before it breakdown below the triangle formed between this period on 11-Jan-2011 @ 5698 and completed our (600 point) expected correction by making bottom @ 5177.7 on 11-Feb-2011. As nifty was oversold it did break through the resistance level of 5600 on 25-Mar-2011 with gap and surged to 5944 level on 06-Apr-2011, which is near the 61.8% retracement level @ 5902 (Movement of 1160 point correction from Nov-2011 Top to Feb-2011 Bottom, also a trend line resistance - green line in the attached chart) and plummeted dramatically to 5328 level on 25-May-2011 as nifty failed to cross 61.8% level. After 600 point dramatic correction nifty rose 300 points to 5600 level again in first week of June 2011(the same resistance level faced in early Feb-Mar 2011 period) but failed to sustain at that level and made another bottom of 5195 on 20-June-2011. (which is nearby the earlier bottom formed @ 5177.7 on 11-Feb-2011, Possibly a double bottom )
In the period of 8 months (Nov-2010 to June-2011) nifty made three LH (Lower High) @ 6338.5 on 05-Nov-2010, @ 6181.05 on 04-Jan-2011, @ 5944.45 on 06-Apr-2011 and made possible double bottom @ 5177.7 on 11-Feb-2011, @ 5195 on 20-June-2011. Nifty 50% and 38.2% retracement levels are 5767,5632 respectively for the above said 8 Months of movement of Nifty from Nov-2010 to June-2011, Nifty must cross and close above this two levels to validate this possible double bottom. However, if Nifty fail to do so and break below this two bottom, it may correct up to 4600 level in coming moths. (Another view is forming from the chart is Nifty either forming big Triangle with 8 months time frame or Head and shoulder pattern with 6 month time frame, which is yet has to be confirmed)
Happy Trading.
--
Thanks,
Commodity Daily
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Note- Members express their own view & may be or may not be having investment or speculative positions in the commodity, please do not take it as buy or sell advise, please use your own judgments for buying or selling, after having discussion with your certified investment brokers or the person to whom u have good level of confidence. once sentiment is changed from good to bad no good news work but bad news do work, investors must keep this in mind.NEW INVESTORS SHOULD BE VERY CAREFUL.
As you can see in the attached chart Nifty topped @ 6338.50 on 05-Nov-2010. Nifty was trading in range of 6200-5800 for a while before it breakdown below the triangle formed between this period on 11-Jan-2011 @ 5698 and completed our (600 point) expected correction by making bottom @ 5177.7 on 11-Feb-2011. As nifty was oversold it did break through the resistance level of 5600 on 25-Mar-2011 with gap and surged to 5944 level on 06-Apr-2011, which is near the 61.8% retracement level @ 5902 (Movement of 1160 point correction from Nov-2011 Top to Feb-2011 Bottom, also a trend line resistance - green line in the attached chart) and plummeted dramatically to 5328 level on 25-May-2011 as nifty failed to cross 61.8% level. After 600 point dramatic correction nifty rose 300 points to 5600 level again in first week of June 2011(the same resistance level faced in early Feb-Mar 2011 period) but failed to sustain at that level and made another bottom of 5195 on 20-June-2011. (which is nearby the earlier bottom formed @ 5177.7 on 11-Feb-2011, Possibly a double bottom )
In the period of 8 months (Nov-2010 to June-2011) nifty made three LH (Lower High) @ 6338.5 on 05-Nov-2010, @ 6181.05 on 04-Jan-2011, @ 5944.45 on 06-Apr-2011 and made possible double bottom @ 5177.7 on 11-Feb-2011, @ 5195 on 20-June-2011. Nifty 50% and 38.2% retracement levels are 5767,5632 respectively for the above said 8 Months of movement of Nifty from Nov-2010 to June-2011, Nifty must cross and close above this two levels to validate this possible double bottom. However, if Nifty fail to do so and break below this two bottom, it may correct up to 4600 level in coming moths. (Another view is forming from the chart is Nifty either forming big Triangle with 8 months time frame or Head and shoulder pattern with 6 month time frame, which is yet has to be confirmed)
Happy Trading.
--
Thanks,
Commodity Daily
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BLOG : http://commoditydaily.blogspot.com , Twitter : Investmentdaily, Facebook : CommodityDaily
Note- Members express their own view & may be or may not be having investment or speculative positions in the commodity, please do not take it as buy or sell advise, please use your own judgments for buying or selling, after having discussion with your certified investment brokers or the person to whom u have good level of confidence. once sentiment is changed from good to bad no good news work but bad news do work, investors must keep this in mind.NEW INVESTORS SHOULD BE VERY CAREFUL.
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