NIFTY 50 had a great fall !!

Well I havent posted anything fro last 10 days..the reason being I didnt have access to broadband...newaz i was never away from the action and I continued to track markets and yes..apply my technical knowledge to predict the future :-)

In my previous post i had mentioned that though markets look overbaought NIFTY might still move as the overall trend was bullish....Actually after the formation of hammer NIFTY fell for about 3 days...This indicates that Hammer is only useful when it is observed in a downtrend.....

But as i said the overall trend is bullish and markets will move up and i personally felt that they will move close to 5200 mark ans that exctly happend when NIFTY reached very close to that mark....The NIFTY chart after it reached that amrk around 5200 looked like following:

Base Chart Source: http://www.icharts.in/charts.html

Now if u look at all the different indicators at that point following can be seen

Bollinger Band: The candlesticks had touched the boundary of bollinger band so it indicates that NIFTY will fall from this level

RSI: RSI line is very close to 70 line mark which indicates that NIFTY is very close to being overbought and an overbought condition indicates a revrsal

MACD : MACD chart indicates that MACD line has cut the exponential line from above which again indicates that NIFTY will fall from this level

Slow Stoichastic: It shows that %K line has cut %D line from above. Also the %K and %D line are cutting 80 line mark from above and moving downwards. Both theses indicates that NIFTY will fall from here.

Thus all the 4 indicator indicates that NIFTY will fall from the levels of aorund 5200 and it can be seen that NIFTY fell 3 continous days after reaching around 5200 levels....Thus if any1 had spotted these indicators he/she could have easily predicted the NIFTY movement....