On weekend if I get time I tend to study the weekly and monthly charts. I am lucky this weekend to be able to spend some time on my computer and thought to leave some views on my blog for my friends.
The weekly charts and Monthly charts are important to read for positional trades as well as to time you investments.
On the above Nifty weekly chart, the rangebound markets are clear as they seem to be trapped between the two pink lines I have drawn. The resistance is around 3150 levels and the support has been coming at 2600 levels. Nifty will have to breakout and close above or below these two lines before any positional call can be taken.
For fibo lovers and believers, I have also plotted the fibo retracement levels of the last down leg. Interestingly the important retracement level of 38.2% is right around 3150 levels and believe me or not, the monthly R1 pivot level is also around that area.... well... talk of so many foes accumulated at one place to stop any bullish advances! anyways, if Nifty can close above these levels .. it will be fantastic for bulls... right time to go long !! However, as a positional trader I would rather short near 3150 keeping a 50 point SL and initiate longs if SL is hit.
By the way, other good news for bulls right now is that both MACD and RSEX are bullish currently... guys are we set to see 3500 levels again in next two months? Will leave you with that thought to ponder upon!
Cheers
SH
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