Tuesday, July 21, 2009

Two consequtive strong close, but not yet ready for the big up move ?!


Yesterday again was a strong trend day and closed almost at day's high. On its way up there have been powerful bear traps made at the level of 4445 and NIFTY managed to close above 4500 levels.

As said earlier, a close above 4275 would push NIFTY to 4475 and the target is reached.

Clearly now almost all the neavy weights are geared up for the next up move, so also NIFTY. A breakout of the 'W' pattern which is also a bullish indicator.

Having seen all this, it is difficult to take a bearish stance now. Now that the run up has been too fast, NIFTY has to cool off a day or two if at all this bull run has to continue, a bearish move atleast to throw the weak bulls out before making the next one.

A move either side could be equally justified and so it is prudent to wait for a two or three days to see how this spans out before making any trading calls.

Resistance levels : 4526, 4551, 4582

Support levels : 4465, 4444, 4412


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Happy Trading
www.tripleint.com

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