Nifty Page :3-10-2012

EW labels:

This C is seen as a 3x3x3x3x3 Ending Diagonal wherein
 C1=4770-5348
C2=5348-5033
C3 in play (again as a 3 wave form) from 5033 upwards
C3(i)=5033-5448=415
C3(ii)=5448-5216=232
C3(iii)=C3(i) meant 5216+415=5631(already done)
C3(iii)=1.236*C3(i) meant 5216+513=5729(already done)
C3(iii)=1.382*C3(i) means 5216+574=5790


However,TL and Momentum studies keep on showing decreasing momentum:
On Monday we traded below the rising TL and the Daily RSI has shown neg divergence:

In terms of Price-points, however no weakness can be said to have emerged as we traded above 5DMA(5682) and Weekly Pivot(5692). So these two price points should be watched ---only close below these would say that prices is getting in consonance with other studies.

Hour chart shows formation of a wedge-like form:

 Here 34 hr ema at 5687 represents an important price-point.

So 5790 on the upside and 5680 on the downside remain important price-points.

EOD Post:

Same story continues---new price highs but RSI failing to make new high. Thus negative divergence continues.

Hour chart:

Thus neither 5DMA(now at 5694) nor 34 hr EMA (now at 5700)got tested---so on price front,no weakness manifested so far.