Monday, February 2, 2009

It is still a trading range

The Nifty has spend 15 trading days moving inside this range - 2700 to 2875. Thanks to increase in volatility, there is a sense that the markets are moving a lot. but, the truth is : the markets are where they were. Since they move up and down, day after day, there is a sense of movement. This is a deception, as the market remains inside a narrow trading zone.
Sooner or later this range will break. A move outside the range should provide a trending move, so watch these range levels.
Banks charts are cause for worry. The Bank Nifty seems to have made a bearish flag and broken down from flag support, today. Flags are made half way in a trend. based on this principle, the bank Nifty (close at 4240) may be heading towards 3000. Of course, the pattern could fail and my analysis may be wrong. But, still...
Take care.

2 comments:

chandu said...

GOOD MORNING SIR,IAM LEARNING ABCD'S IN TECHNICALS.YOUR ARTICLES WORTH A LOT.THANK FOR YOUR ANALYSIS.

CHANDRASEKHAR

Ram said...

This is not a flag pattern Mr sukhani yu need to join 23rd high to 30th high. it fails on this count otherwise everything is there like declining volumes, a large pole over several days,etc

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