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Sunday, March 13, 2011

Bearish for next week

Lets look at the hourly chart.

First we have to fill that GAP. That will be done when the nifty is at 5334. The Gartley which has been forming is showing some perfect Fibonacci relations. C retraced exactly 78.6% of AB at 5564. We have been sliding down since then . Now we are below the 20 HEMA ( green).  Look closely how it had been providing significant support and resistance all this while. On Monday I expect the markets to try to touch the 20 HEMA again. And if we take 5313 level, that would be 78.6% of XA.

The reversal zone shown by the point D also coincides with the strong trend line support we had been shown by Orange. I expect the markets to touch that line within this  week .

Again we take a look at very short term charts for more Info. Now we are trying to forecast what might happen just the very next week . So we have to look at minute details. Below is a 1 minute chart .

We saw a huge impulsive move down after the earthquake. The Nifty went down from 5502 to 5411. Now that 5409 area has been acting as a good support for almost two months now.  Slowly we saw some pullback  . I think the retracement will be to that 61.8% line which is 5467. Now 5467 had been acting as a very strong support and we had seen some good bounces from that point. Well now that we are below it , we might try to touch that line again .

On Monday I expect the Markets to travel towards the upper blue channel line .  And then reverse. We can already see one of the targets if that markets complete that Wolfe Wave by touching or moving close to that Upper blue channel line. That Target is shown by the thick RED line giving a target of 5410.

The 15 min chart shows there will be a bullish up-move to that channel top.

Some more Information from the 1 minute chart::

If we assume this will play out a ABCD pattern , then the first targets will be 5377.

If we measure the current retracement , and consider it as AB=CD pattern , The D point comes to 5467-5471 range .

The above things were said by the charts . But offcourse we have other troubles like ME revolutions hotting up and JAPAN nuclear trouble.

We will see tomorrow .


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