28.03.11_Monday

30 min chart

Median lines from immediate swings marked as P0-P1-P2 .The price rally moves beautifully across the ML and has reached the Upper Median line parallel.Expecting the test of the UML tommorrow( 29.03.11)On retest of the UML at 5740 range and falling down , can enter a short at 5740-5700 range with strict Stoploss at 5750 as this will be a counter trend trade.The fall expected is a pullback till it reaches a target of 5550-5525 at LMLH.Multiple supports are present in this range.Consolidation for further upmove will be expected.

Confirmation for entering short position

- Test and retest of UML at 5740 levels

- Stoch readings crossing below 80

-Price fall below 5650 which is the immediate minor low pivot .

Alternate View-Price can consolidate in a range between 5750-5650-5600 levels before commencing the next upmove to 5800 range.If the consolidating move extends for a few days then shorts to be closed.

Daily Chart

Trend has turned Positive with the price move above 5600 levels.Price looks to be heading towards the Magenta median line and the red UML parallel - 5750- 5720 range.

Stoch readings are reaching oversold levels.

To confirm entering a short for a short term trade, stoch reading should turn down from 80 levels.For this next few days should be range bound/ negative close days.Positive momentum last week with the rally should result in a few days of consolidation this week.Any pullbacks should be supported at 5600-5550 levels.Only below 5550 levels , will have to review about the trend.