There is a ’strong piercing pattern’ on the weekly chart below. It is a bullish sign though candlestick patterns always require confirmation from the next unfolding pattern. However, there are also some positive divergence on momentum indicators and the trading volume was also noticable towards the close of the week.
On the daily chart below it also portrys a picture of confusion between the given two blue lines.
Charts: Quote.com
A close above 15000 would signal another primary uptrend unfolding. But it seems that in case of a failure to give a close above 15000, this index could remain within a range of these two blue lines for some more time. In other words, the risk appetite traders could go short around 15000 with 15500 as stoploss on closing basis for a target of 13500 to 13300. While on the other hand it would be riskier to initiate fresh long positions (short term) on a close below 13300. However, the long to medium term traders could keep cherry picking at their well researched counters as long as this index is trading above 12580. A close below this level would imply another primary downtrend.
ALSO PLEASE CLICK HERE FOR LONG TERM VIEW PUBLISHED EARLIER ON THE 31ST MAY 2009
