NIFTY Searching for Directions

NIFTY Weekly Chart is struggling for new direction. The important indicators are giving confusing conclusions. The buying pressure has started to come off its high as you can see at the top of this chart. Momentum indicator is exhibiting positive energy at the bottom of this chart.

A close above 4500 on continuing basis would indicate a march towards 6500. Observe the red dotted line connecting May 2008 high to May 2009 high.

Close below the blue dotted line could bring some pain. Certainly there is a very strong support at 4000.

Best action for now would be to be on sideline and wait for confirmation on either side. With lack of buying pressure it appears that some selling could occur until next support is found.