Although Nifty Futures made an attempt, it could go only upto 3723 & could not cross previous high of 3729. It quickly gave up most of the gains and closed near the lower end of the day. I have attached Nifty Futures EOD chart with markings for a Rising Wedge. Effect of this wedge will be felt once 3519 is broken. Please recall that we still have unfilled GAP around that area. Once this level is broken, 3325 should offer good support as it is 1/3 rd retracement of rally that started from 2525 to 3729 and is also an old TOP (3298) made on 5.11.2008. While today these levels may look little far away, please remeber that:
1. This rally has been going on virtually non stop from 2525
2. We have events lined up starting this week end, that have tremendous significance and great level of uncertanity.
I have also attached a chart for RELIANCE FUTURES EOD, that shows similar Rising Wdge formation, although the breakout point on down side is little far away. In this case, if it breaks 1840 the effect of this Wedge will come to play and the price may find support at around 1700 which is 1/3rd retracement level of the recent high/low.
It may be noted, that the angle of ascent in case of Reliance is much higher than Nifty Future and hence the fall can also be that much faster/sharper.
We have two trading sessions before the results are out, so take positions very carefully as market may see high volatility till the final tally is made and the new Govt. takes shape.
Till then ...Happy Trading,
Ketan Asher.
No comments:
Post a Comment