NR 7 in Nifty Weekly Chart & Hero Motor Corp at its support level.

NR 7 in Nifty Weekly Chart

Nifty made a pattern of NR 7 in weekly chart. For the weekly, NR 7 represents, narrowest weekly range over the last 7 weeks. The NR 7 represents the contraction phase. After a contraction we expect an expansion. The key question is, “In which direction”.

A move above the week’s high at 4922 will suggest that the expansion is coming on the upside. Chart below:

Hero Motor Corp at its support level

Hero Moto Corp is now trading at its support level. This support level comes from Fibbonacci Retracement. HeroMoto is trading near to its 0.618 retracement at 1917. I have taken this retracement from low made on 8/8/2011 at 1720 to high made on 9/9/2011 at 2237. This suggest that the support comes at the 1900-1920 zones. It is possible to go long with a stop below 1830 which is the .78 retracement. Reader views are welcome. Chart below: