NIFTY FUTURE WEEKLY
NIFTY FUTURE :
As anticipated the week has ended with a engulfing bearish candle for Nifty Future as well as for Bank Nifty. This should be taken as the first confirmation of the much awaited (by me) correction ahead. We will have second confirmation by the end of Tuesday's trading as it will be the last trading day for the month. If the close is anywhere near today's levels, we should be ready for a Shooting Star Candle on the monthly chart - which will reconfirm the bearish signal given by the weekly candle.
On the attached chart you will observe that I have drawn Andrew's Pitchfork (in orange color) which has acted as a resistance level for two weeks. All is not yet lost as we have not broken even the previous week's low. This week's low at 5398 is at the high made in the week ended 9th April 2010. Moreover, as can be seen on the chart, we have closed below the trend line starting from the low of 4786.
On the down side, once the 5350 level is broken, we have major support at 5225-5250 range.
The regular readers will recall that, in the critical levels mentioned in my post, I have been giving the level of 5400 for some days now. This level is achieved today and market can take support at least once at these critical levels.
Today's weekly chart gives the first indication of weakness in the coming days. Hence it would be advisable to plan your trading/investment strategies accordingly.
I will post the TURNING POINTS for 30.8.2010 by Sunday evening.
Have a nice weekend!
Ketan Asher.
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