Recap: We anticipated a change of trend as mentioned in the last post. The combination of an aborted Candle Pattern and channel bottom approaching, culminated in a huge gap up mid week. This was followed by a consolidation above the blue line - finishing the week with equal credit to Bulls and Bears despite a 1+% gain for the week.
|Nifty - End of Day Chart - 23 12 2011|
|Nifty - End of Week Chart - 23 12 2011|
Nifty End of Week Chart: Week candle for the first time in a long while stayed firmly below the 200 DMA. Continuation of such behavior is a recipe for a big crack to the 4200 level. The silver lining is the indicator shown just about staying above the support/resistance line.
|Nifty - End of Month Chart - 23 12 2011|
Nifty End of Month Chart: Continues to be in Bear grip below the 4750 line - throwback to the green channel bottom line - is still a possibility.
Looking Forward: Staying below last week's high or the 200 Week DMA - one sees the week going deeper into the red .. a quick move early in the week above the 4750 level followed by a dash to the Fib61x level on the Day Chart would be the script the Bulls would look to enforce.