Exit All Longs if nifty is unable to stay above 3260

By | November 10, 2008

Hi all

Now nifty has rallied quiet a bit in recent days.

Now we will face major resistance at 3260which is 38.25 retrace of current powerful bear market rally .

Long pepole should get a bit of caution as if unable to cross the 3260 mark we may retrace back to 2860 level.

Technically speaking On daily chart, Nifty is forming an inverted head-and-shoulders pattern, whose neckline is placed at 3,241 and an upside breakout of this
neckline will take Nifty to 3,650 in the near future. Further,the close of Nifty above the 20-day simple moving averages is adding to this bullish scenario until Nifty holds the support of the moving average.

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