Update for 15th February 2011

Is This Still a Bounce or a Reversal ?

• Nifty Future opened some 30 points higher on Monday, following the positive bounce on Friday.
• The day's low remained at 5336, leaving a small gap of 6 points between the  trading ranges of Friday and Monday.
• Nifty futures rallied above the minor resistance level of 5350 and rallied strongly for the entire trading session.
• Though the 4400 - 4410 level was expected to be a minor resistances, being the intersection point of the falling trend line applicable to the last leg of the fall, the Nifty contracts didn't encounter any resistance at the level.
• Nifty futures spent some time trading in a range between 5420 and 5440 before rallying to a high of 5468 before closing for the day at 5455.

    Nifty Futures - Intra-day Chart  

    Nifty Futures  - Daily Chart 

Update for 14th February 2011

    

A Dead Cat Bounce or a Reversal ?

• Last Friday, Nifty futures opened slightly higher at 5241 and immediately sold off to the previous day's close of 5225.
• The Nifty contracts spent some time between 5225 and 5240 before breaking the reference level of 5225.
• Nifty futures sold off to record a new swing low of 5175 in the morning session. However, it seemed that the volumes near the new low were drying up after some time.
• Therefore, the Nifty contracts tried to recover. The recovery almost continued till the end of the day so that the Nifty contracts closed above the previous day's trading range at 5313.  

    Nifty Futures - Intra-day Chart