Classic TA for Nifty ji: 08th Feb'12

Before analysis:

jus wished to share a funny Stat: Today's plus trades in my acct were on the LONG side !
Ok now the TA part:

1. The main Obsv is 14d RSi refuses to move up, its as if No dose of BULL medicine is enuf to prop it up.
Here it pays to look @ the formula for RSI
RSI = (100 – (100 / (1 + RS)))
RS = 14-day EMA of upday closing gains / 14-day EMA of downday closing losses
Now if the RSI refuses to INCREASE, it means that RS is @ EQUILIBRIUM.

... in simpler words, THE UP MOMENTUM HAS NOW BECOME FLAT !

2. EOD Candle today was a HARAMI / PREGGI LADY.. it say this is a TIME of INDECISION & also LACK OF DIRECTION beyond the range 5320-5412 Need a EOD close below the Doji / Engulfing Bear low @ 5322-5327 , to CONFIRM SHORTS

3. 5412-5460 is a RES ZONE @ the higher side, 5260-5320 the SUPPORT BAND

4. VOLS are AVG, so on indications

SUMMARY:

1. The Best time to short would be @ 5414-5460 zone, wid 20 pts SL

2. For the "pure" TREND FOLLOWER, pls wait for price to close below 5322 & GO SHORT WHOLE HOG !!

cheers