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Friday, April 15, 2011

Nifty ready to EXPLODE UP.

We take a look at the 4 hour chart . We knew the blue trend line was going to be massive resistance and it has turned out exactly like that . To break it Nifty needs to consolidate and it has been doing exactly that .

The Nifty is moving up inside those converging light green trend lines . We already have seen before the blue descending trend line has provided massive resistance which worked the last trading day too. The red one has been the most accurate in providing resistance and support . Today we saw that Nifty went down to find support at the intersection of the pink and the light blue lines .  We find the Nifty consolidating in a triangle .
Most probably the light blue trend line will be the lower support line of this triangle and the upper boundary could be both the blue line or the dashed line . But the APEX of this triangle is very near and we will soon see a break out .

This time NIFTY could be aiming for that RED DASHED trend line . We take a look at the weekly chart .

The light green line is provided good support

Lastly the short term chart 1 min chart showing the NIFTY has been channeling for the last 3 hours . The light green line also shows that the Nifty may be headed up from here for a target above 5850.

What i suspect is that NIFTY is going to do 2-3 trading days of consolidation before EXPLODING UP towards that RED DASHED line .


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