Nifty future had a green day after a net fall of 12 trading days with the 2 other green candles having no meat in it. Its a bullish engulfing candle so it holds some promise but needs further confirmation. The high for the future after expiry of July 2013 is at 5974.25 so to get the shorts out of the system we need to take this level out. The next important hurdle for future is at 5841 high of 01.08.2013. But we are still at the bottom of the range and yet low has been not confirmed. Our monthly levels hurdles are at 5655.15-5739.25-5831.25-5923.25. The last two levels do match with the chart pattern and are very important. On chart we have the red trendline whether some reversal could be expected if not early. Use the monthly levels for trend evaluation.
On the 4 hourly chart we are bouncing from the overshoot area which is significant i.e. 5547 on charts. The resistance is at 5625 and support at 5469. The two levels of earlier bounce back are at 5547 and 5469 approximately. Staying within the established range is imperative for futures else we move move into unknown territory for more surprises. So staying above 5625 will bring more positiveness.
On the hourly chart with awesome indicator we see the awesome in green and moving towards the neutral zone. Awesome moving above the neutral zone may see some stability to futures. RSI needs to stay above the 34 levels and should clear the 55 and 68 levels for further strength. MACD also should head for the neutral zone to confirm the trend. On this time frame 5575 is the pivot with 5650 as hurdle and 5500 as support.
Spot Nifty Levels for Trading on Monday :
No trade between 5547 and 5584(To avoid whipsaws)
Buy above 5584 sl of 5564
targets 5605-5624(add positions, breakout on the upside),
5643-5662-5681-5700-5719.
Sell below 5547 sl of 5567
targets 5528-5509(add positions,breakout on the downside)
5490-5461-5442-5423-5404.
Happy Trading !!!
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