Saturday, November 12, 2011

TURNING POINTS FOR WEEKENDED 11.11.2011



NIFTY FUTURE WEEKLY

Past week having just 3 trading days ended with lower top / lower bottom. Considering the few trading days the range for the week too was small at 173 points (High 5334 & Low 5161). The positive part is that we have not broken the low of the previous week when Nifty Future broke out of 5200 levels and made a high of 5400. When seen in this context, lowe top / lower bottom seems less significant.

As shown on the attached chart, Nifty Future has been moving inside a channel for over 50 weeks. It will have a break out at 5420 which could lead to further up move. If Nifty Future crosses 5400 now, it will even cross 200 DMA which should be considered positive. For the next week, long position are advised with stop loss of 5140.
Please don't miss the post for 14.11.2011 where I have discussed a pattern which gives reasoning for the possible up move.

Have a nice weekend!
Ketan Asher.

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