Indices

Saturday, May 07, 2011


  

BSE MIDCAP: (RUNNING TRIANGLE (BULLISH) OR H&S (BEARISH)???)

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BSE MIDCAP closed @6863.78 on 06\05\2011. It closed below 40WEMA & 20WESM on weekly closing on 06\05\2011. Although weekly KST is still in BUY, it has broken crucial supports pointing bullish structure at least in short term.

Medium term structure is still not very clear in BSE MIDCAP. It can be big distribution or consolidation pattern either H & S (if bearish) or Running Triangle (if bullish) as per chart attached in the market.

Breakout from this pattern will lead to strong directional trend in the market. 6180 is neckline support; fell below it will lead to sharp fall till 5100 to 4500 levels.

On the other end, 7200 is crucial resistance at the upper side; rise above it will lead to strong directional move towards 8700-9500 in BSE Midcap.

For the time being it will trade in this range between 6100-7200. Breakout from it will lead to strong Trending move in BSE MIDCAP space.

One should keep finger cross till it breaks at either of side & Trade both the sides i.e. Long & Short with stock specific approach.


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