Happy Days are Here Again, Thums Up! - AP

Talking of a broader perspective, it is better to look at weekly charts since the hourly and daily charts show only gloom and doom. The island reversal, which readers might recall was pointed out here, has had the bulls marooned deep sea.

The weekly charts do not show any ray of hope, however, one startling fact stands out. Since May 2, 2008, the Nifty has gone down and closed negative on a weekly basis, and this has now happened for the last 7 consecutive weeks.The next week is a Fibonacci number (8), and a good reason for bulls to show some spine. It is highly likely that the level of 3800-3840 on the Nifty will be protected, and the levels to the upside are as shown on the chart.

A possible final target for an upmove is 4530-4540 in the next few weeks. The level 4740-4750 looks an impregnable fortress as of now, and cannot be crossed so easily. To put in a nutshell, happy days may be here again (middle-aged traders who have seen the old ThumsUp! advertisements would understand).