NIFTY : 23 April'12 - Triangle contraction and Wave theory explantion

You can study chart as of now.

[Click on image to view it clearly.]

Success ratio in trading carrier is very small in India compared to developed nations. I can say that majority of traders do not believe in the study of technical analysis which is nothing but the study of a reaction by mass towards a particular event. Most of the traders do impulsive trading which is a must avoid step during intraday trades.

I am giving you little reason to believe ‘Technical Analysis’ through free publication for public reading. I always try to explain each of my important levels rather than forcing you to believe me. Here are some key levels which were predicted successfully before they achieved.

• Recent hitting 5343 – Already given stiff resistance of 5339 nearly two days in advance.
• Low of 20 April 2012 – Market slipped in freak trade panic and low hit 5245, Support was mentioned @ 5343 before opening hours.
• 16 April 2012 and 13 April 2012 – Predicted for rebound from nearer levels of 5193 and then 5183. figures were predicted at least a day before
• 03 April 2012 – Predicted “gains may not extend above 5386”. Nifty slipped from 5179.
• 29 March 2012 – In my pre market study, I advised my subscribers not too try short if it holds 5135. Nifty reverses from 5135.90.

All above levels were explained time to time. Do take a note that “Technical Analysis” may not be 100% correct but still it’s the only tool for ‘intraday traders’.

Today’s view –

Nifty hit a high of 5136 before falling, which is 50 day’s moving average as of Friday’s trade. Fall came due to panic of freak trade but charts have changed. Technical charts are suggesting for stiff resistance at 5342 levels.

If weakness grows from current levels then we can expect fall up to 5243 levels first and then retest of levels near 5183.

One must focus on the above chart to see the development of contracting triangle. This breakout will make some great movement in expiry week. I am going to act short on rise again as long as 5342 sustain as resistance.

(Technical Analysis key:  - We are currently at such levels where we must have two views, one should be bearish and one should be bullish. Depending on market conditions apply the most suitable one).

Alter view suggests that if we spend time above 5350 then we will add more strength on forward momentum to see levels of 5400-5446 levels.

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Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889