Inside a narrow trading range – Again

The Nifty is in a trading range with well defined support at 4950 and resistance at 5100. This is a narrow range of just 150 points. Sharp swings inside this range give the impression of volatility as well as trend, but the fact is that the Index is not really going anywhere. This range has lasted 12 trading days. If the Nifty finally breaks out from the range and moves above 5100, the range would be a substitute for a correction in the short term trend. The 60 minute chart shows that there is a possible head and shoulder in the making. Here is the chart:

Now, the pattern is not complete – far from it. The bulls have been in complete control till now. In fact, even a breakdown from 4920 may not result in touching the 4750 target – it could be a whipsaw. But the partially complete pattern is visible, and we need to watch it as it develops.

suseem asks: “pls tell me if the level 1 exam will b conducted in may/june or will it b level 2?”
My Notes: In December 2009, the Level 1 exam will be offered. Starting 2010, both exams will be offered twice a year, in May/June and Nov/Dec.