NIFTY FUTURE WEEKLY
NIFTY FUTURE:
Finally the week and the month both have ended on a weak note. As such, monthly candle is a 'Gravestone Doji' with a long upper shadow - indicating bearishness ahead. On the weekly chart (attached) this weeks' bar is an outside bar suggesting - weakness below this week's low (5966) and strength above this week's high (6180).
At this stage, I would like to remind the readers that we have a top of 6318 in place in 144th week from the all time high of 6336 in Jan 2008 and since then I have been suggesting caution - as 144 is an important Gann no. This gets further confirmed by lower bottoms on the weekly chart. Moreover, I have shown a down sloping line starting from 6318 and the weekly top of 6180 is exactly on this line. Going by the same logic, we need to cross 6145 level to change this view, however one more hurdle of 6190 (0.618 level) would remain to be crossed.
On the down side 5700-5750 can provide a strong support.
In case you share the above view, please keep a tight stop loss on long position, as normally markets find a reason to fall after the technicals have indicated the weakness and I guess that is the whole purpose of looking at markets technically.
I have retained the 'likely formation' of the Right Shoulder of a big Inverse H & S (in Lime Green color), so that readers can get a big picture of how deep the correction could be. While I do not know what reasons will evolve over time to complete this pattern, but I do expect INDIA (or at least the Stock Markets) to shine brighter, once this pattern is completed after some pain.
Get ready to celebrate Diwali next week!
With Best Wishes,
Ketan Asher.
Words of Wisdom
Happiness is the profit we harvest from life.
All life's activities should be periodically reviewed for their return on investment.
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