Wednesday, 10 June 2015

LM's Technical Insights!!

CNX Nifty after drifting lower from the peak of 9119 in early March'15 has corrected all the way near to 8000 level. At this juncture the index is near to its major support trend line constructed by joining the lows of 17th December'2014 and 07th May'2014. The index at this support has formed a morning star reversal candlestick pattern along with positive crossover in RSI momentum oscillator. Moreover, this is the third point on the trend line which is a Fibonacci number. Considering these technical evidences it is evident that a short term bottom is in place and the index may head higher towards 8450 levels.  

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