iCharts Discussions

ajitg76 · White Belt Joined: 08 Dec 2009 Posts: 21

As shown in the chart, during the week NIFTY has broken the trend line support which was provided by low made in May and August 2010. The falling channel marked in blue colour is clearly visible on the chart. It has also breached the 61.8% Fibonacci Retracement level for the rise from 5349 in Aug 2010 to 6339 in Nov 2010. This level was at 5725. FIIs are heavy sellers on account of scam news and global worry created due to South & North Korea war fear.
5740 is very critical. Close below 5740 will pull down NIFTY up to 5560! So keep close eye on the blue channel line highlighted in the chart. The upper band of this channel is acting as a strong resistance. Close above 5840 is necessary for Bulls to step in and push back Bears on back foot.
warning and alert :upper trendline is showing support but not confirmation for bull 5555 is the tgt .where long entry advisable

sartaj · White Belt Joined: 27 Jul 2010 Posts: 15

Hi ajit, i would just like to ask you one question have you ever witnessed a breakout from channel and how does it react if it enters the channel back, since i think if it enters the channel back then we might see the market go way back down to 5100 odd since the channel support would be at the lower level. please clarify if possible.