Friday, December 3, 2010

Nifty channel shows some more upside pending.

Nifty is trading in an uptrend channel for last 1 year.
The index has given a good bounce back whenever it touched the lower channel.

It touched the lower channel in Aug'09 and July'10 and then bounced to the top of the channel.
Comparing time wise the index has spent more time in upper half of the channel then in the lower half.

During this fall the index came to the mod band of the channel and then has bounced back.
This kind of scenario generally comes into play when the index is in bull run. (debatable issue)

It needs to be seen if the index crosses the upper band and makes a new high then for sure it is a bull run. ( no debate here :)

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