Monday, January 25, 2016

Hammer - A Sigh of Relief for Bulls ! ! !

Hi All,

Thanks to the Last Engulf Pattern on daily charts and Morning star pattern on hourly charts, Nifty has already bounced back by almost 3-3.5%.

It’s now trading near its resistance zone of 7470-7500, above which Nifty can go up till 7550-7610...


Finally, there is good news for the bulls that on Weekly charts Nifty has created a Hammer Pattern, and prices have already went higher than last week’s highest price which is a good sign.

However, playing safe, it is advisable to wait for a cross of 7610 mark before calling it a confirm short term bottom. Above 7610 mark Nifty can then scale new highs of 7700+ and after closing above 7730 (a gap on daily charts) one can even call for a medium term bottom for Nifty as well.

In a nutshell, Nifty currently trading near  crucial zone 7470-7500, and after surpassing that bulls should pray for a successful breach of 7610 level.

Supports on the lower side are 7440-7390-7320-7370-7340...

Cheers

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