The Nifty, on the 30 minutes chart, again moved up today upto 6337 before coming down again to close around 6266 levels. The rise once again found resistance near our resistance line, which it once again could not cross. The continuous rise in the Nifty against the continued downtrend in the RSI suggests weakness. As mentioned yesterday, support is likely between 6150-6170 depending on how quickly the Nifty comes down. Another point to note is that while the uptrend line has been broken, yet we are not in a downtrend because the pattern of lower highs and lower lows is yet to form. This may just be a consolidation or a less steeper uptrend instead of a downtrend.
3I Infotech has made a possible inverted head and shoulders pattern on the 60 minutes chart. The target for this pattern is near 163. Consider buying near 154 with a stop below 150 for a target of 163. This chart is for short term traders who are looking for quick entry and quick exit with small profits.
Happy investing!!!
Wednesday, January 09, 2008
Newsletter for Jan 10, 2008
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