Candlesticks with a long upper shadow, long lower shadow and small real body are called spinning tops. Spinning tops represent indecision. The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session. Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand and the result was a standoff. After a long advance or long white candlestick, a spinning top indicates weakness among the bulls and a potential change or interruption in trend. After a long decline or long black candlestick, a spinning top indicates weakness among the bears and a potential change or interruption in trend.
Source : Stock charts.com
Source : Stock charts.com
Jan 5th Day made a DOJI - which is an indecisive candle. Jan 6th Candle is spinning top again depicting indecision.
So a continous tug of war is happening between the bulls and the bears.
Coming week would decide if NS would gain support at the lower trendline of the falling wedge or the H&S would breakdown for a deep fall.
If the Base of the FALLING WEDGE provides support then a Huge upmove would be possible. If the support is broken then, C is likely to end near the Channel Bottom below 4300-4200.
Nifty is struggling hard to break through the Long term Support line in weekly charts. For 3 weeks in a row it has closed below the support line. A close above the Support line is very essential for further upmoves.
6 comments:
Dear satheesh,
Thanks for weekly chart and specially thanks for pointing out "Topi Pattern" in Nifty Chart.
Today's 2HRs volumes perticularly in NF shall be interesting is feeling...because for most of the traders it is nothing but mock trading...so Let us see.
Todays Highest volume tick is at 4756. Do you feel that there could be good voume trading today?
As per voulume profile charts the Highest volume of yesterday also seems to be at 4755-60 levels. Are you Bullish or expecting a fall?
Dear satheesh, this is my very short term or you may say opportunistic view which just few Hrs ago,I shared @ San's Blog.
Here your 2nd (Nifty Weekly) & 3rd(Nifty Daily) Charts and His third i.e. Nifty Daily chart from latest post are important and interesting for me when,now NF has O.I. just around 2.04 CR.
From very short term opportunistic trading point of view it is not comfortable for me to go long is my personal view.On the contrary if,like yesterday last Hr. trading,from here onwards if Nifty shall try to cross 4800 hurriedly then it would be nothing but best shorting opportunity for sellers to go short @ comfortable higher level i.e. around & between 4820-4850 zone.
Let me clear,Weekly & Monthly charts are not favoring such type of trade,so not advisable for positional traders but more consolidation is required for better up side from here,if there is any is my own feeling at this moment.Let us see.. because only price & Volume have capacity to decide the exact Market undertone.
Regarding Your observation:
Today's Highest volume tick is at 4756.
On these types of mock trading type trading day's though the volumes and price movements as usual are not there,these type of Big volume trade has it's own importance.
Let me give you two examples please.
Last year (2010) On Lakshmi Pooja day Nifty show High of the year on that muhurat trading,& there after next day after touching 6338 slept for the year.
For this year(2011)On Lakshmi Pooja day Nifty show 5423 as high on that muhurat trading,where high volume for the day was @ 5417 & there after next day after touching 5399 went down up to current low.
Conclusion:
Apart from the day or Nifty movement on such types of short lived trading days,the High cash volume @ particular xyz price has definitely importance,for next trading day because it is related with CASH ONLY... which matters the most in this Business:)
So let us see from tomorrow that whether there is any significance of the same this time too ? or not?....Here I am not suggesting any immediate deep cut like that two times,as it is not Muhurat Trading Day :) & the circumstances that time & this time are definitely different...But market is supreme always is the fact.
Let us hope for the best.Have a nice weekend.
Thanks mynac for your valuable observation. It really helps a lot.
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