Hi!
There is nothing much to be said, but it would be good to look back and summerise.
The Nifty Weekly chart is always helpful to indicate the trend for the near future.... which does NOT mean the next hour or next day
The important lines are the Red 10 week EMA line and the two Indigo coloured lines for the Bollinger Bands [BB]
On the extreme left side of the chart, we see the BB very near, with the weekly candles between the Red 10 EMA line and upper BB line. And as the weeks progress, the candles keep moving up that make the BB widen.
And when the 'all time high' was reached in Jan 08, and the steep fall hereafter, that the candles have come down, below the Red 10 EMA line. During end May-early June, the candles make an attempt to go above the Red line. This is when the BB are close and the markets are consolidating.
Thereafter, as the candles again fall below the Red 10 EMA line, BB widen to take the markts down in July.
Once again the BB start coming near and markets start consolidating, with the candles still below Red 10 EMA line.
That is the current position. The daily chart appears to be in accordance with the same.
Obviously, it means that the consolidation is in process and may continue for atleast one more week.
Widening of BB is expected to take place there after, which means that the candles are likely to have an up move or a down move.
Considering the pattern and the slope of various lines, the trend still appears downwards. Therefore, the recent low of around 3800 is less likely to be broken in the current week, but a week thereafter, the whole candle may go below 3800.
As I have already said earlier, the markets may succeed in reaching the ultimate target of 3235-3300 for Nifty just prior to Diwali, so that Diwali brings in good investment opportunities to all of us. This may turn-up as a wishful thinking, if the markets do NOT reach their lows in Oct 08, but delay the same by few more weeks/months.
This all, is as per my opinion and thoughts, but I could be wrong. As usual, it is a food for thoughts for all thinkers, who are expected to use their thinking power to arrive at a decision, suitable for their health, and also that of their finances
Cheers and Good Luck!
SS
There is nothing much to be said, but it would be good to look back and summerise.
The Nifty Weekly chart is always helpful to indicate the trend for the near future.... which does NOT mean the next hour or next day
The important lines are the Red 10 week EMA line and the two Indigo coloured lines for the Bollinger Bands [BB]
On the extreme left side of the chart, we see the BB very near, with the weekly candles between the Red 10 EMA line and upper BB line. And as the weeks progress, the candles keep moving up that make the BB widen.
And when the 'all time high' was reached in Jan 08, and the steep fall hereafter, that the candles have come down, below the Red 10 EMA line. During end May-early June, the candles make an attempt to go above the Red line. This is when the BB are close and the markets are consolidating.
Thereafter, as the candles again fall below the Red 10 EMA line, BB widen to take the markts down in July.
Once again the BB start coming near and markets start consolidating, with the candles still below Red 10 EMA line.
That is the current position. The daily chart appears to be in accordance with the same.
Obviously, it means that the consolidation is in process and may continue for atleast one more week.
Widening of BB is expected to take place there after, which means that the candles are likely to have an up move or a down move.
Considering the pattern and the slope of various lines, the trend still appears downwards. Therefore, the recent low of around 3800 is less likely to be broken in the current week, but a week thereafter, the whole candle may go below 3800.
As I have already said earlier, the markets may succeed in reaching the ultimate target of 3235-3300 for Nifty just prior to Diwali, so that Diwali brings in good investment opportunities to all of us. This may turn-up as a wishful thinking, if the markets do NOT reach their lows in Oct 08, but delay the same by few more weeks/months.
This all, is as per my opinion and thoughts, but I could be wrong. As usual, it is a food for thoughts for all thinkers, who are expected to use their thinking power to arrive at a decision, suitable for their health, and also that of their finances
Cheers and Good Luck!
SS
Last edited: