Weekly Technical View for 17 June onwards

Technical Views from our Guest Author Mr. Harish Thakkar

nifty weekly analaysis - Harish ThakkarCorrective rise of the fall started with gap opening, making day low 5739 above previous day high 5729 on last Friday. Holding 50% gain of last rise = 5751 (H 5819 & L 5683) market can reach to 5878 on the basis of behavior of previous fall.

Fall from 6229 to 5937 = 292. Than rise from 5937 to 6132 = 195.Now if we add this 195 to last low 5683 = 5878.This is below June open 6011 & 61.2% Fibo.6020.

From above observation 2 probabilities emerge.

One, if market cross over and hold 6011 then possibility opens for New High in 2013.

Secondly, if Nifty holds below 6011 means making Monthly swing down which can extend to 5878-292=5586 Usually weak market do not correct more than Fibo 38%=5891.

Trading strategy buys in dip, SLO 5751 if market dips due to RBI policy on Monday or wait the event to pass. I use simple thumb rule of trading long above 5DEMA and short below it keeping all other things secondary at back of mind with larger picture without bias.

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