??? OPPORTUNITY

NIFTY WEEKLY

As shown in above chart NIFTY came out of bearish ( downtrend ) channel -- shown with 2 red lines and gave bullish ( up trend ) on weekly closing basis on 3/2/12. After that may and June 12 it tested breakout line ( i.e. upper red  line )  and started its up ward journey once again.

After break out right now it is trading  within bullish ( up trending ) chaneel --- which is shown with 2 green lines.

Now it is facing resistance at one more trend line which is shown in blue colour. Now if it gives weekly close above blue trend line long term investors ( for minimum period of 3-4 years ) can buy quality stocks or mutual funds. There is very high chances of doubling capital within next 3-5 years.

CAUTION :-: YOU HAVE TO WAIT FOR CLEAR CUT BREAK OUT ( WEEKLY CLOSE ABOVE BLUE TREND LINE ), BUY ONLY IF THERE IS WEEKLY CLOSE ABOVE BLUE TREND LINE.

The first target for this target will be upper green line i.e. 5900- 6000

STOP LOSS FOR THIS WILL BE WEEKLY CLOSE BELOW 5032.4

CONTRA POSSIBILITY --- right now fundamentals are not supporting this up move. As per saying - " technicals improve first and later on fundamentals follow ", BUT you never know so you should be prepared for contra possibility. SO if it gives weekly close below lower green trend line NIFTY may go to 4000-4100 level.

SO IN SHORT ONE SHOULD BE CAUTIOUS AND IF BUY AFTER WEEKLY CLOSE ABOVE BLUE TREND LINE ONE SHOULD SELL ALL HIS STOCKS / MUTUAL FUNDS IF NIFTY GIVES WEEKLY CLOSE BELOW 5032.4 AND WAIT PATIENTLY FOR NEXT OPPORTUNITY.
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