Nifty Trading

Fibonacci technique

Fib retracements

Fibonacci Ratios are drawn in above chart from 5548-5965 showing Fibonacci support and Fibonacci resistance. Close above 5965 is required for a breakout and support now exists at 5805 and 5756.

As discussed earlier Fibonacci fan helps in finding potential tops and Bottom of market from short term prospective. If we see the chart closely with Fibonacci fans 5945-5963 is level of resistance, Nifty reacted from 5965 and now support is at 5820.

Nifty Weekly Chart

Nifty has formed Gravestone candlestick on weekly charts , suggesting uncertainty & closed the week negative with minor loss of 32 points @ 5847.Took resistance at Weekly trendline 5940. So looking at price pattern next week breakout or Breakdown should happen.

Trading Monthly charts

Close above 5217 is bullish for market for rest of year, I have been writing this for almost 6 months and Nifty has made almost 20% return for the Year 2012.Support on Monthly charts comes at 5787 and resistance at 5965.As per Historical data December has been 3-4% move month in Nifty and till now we have formed a DOJI candelstick on Monthly chart so next weeks will be crucial. Will be see Santa Rally before expiry?

Nifty Trading Levels