Monday, February 22, 2016

Harami with Ascending Triangle....

Hi All,

As expected, on Friday Nifty traded with a positive bias thanks to higher tops higher bottoms formation on Daily charts, however still it is advisable that it crosses and sustains above 7210-7230 levels.

On weekly charts, Nifty has created a Bullish Harami Pattern and crossing Friday’s high of ~7227 can translate in to a some further upside for Nifty, though the pattern is not as strong as some other classical Candlestick patterns, a bullish bias will surely be supported.

As mentioned in earlier posts, Nifty hourly chart is forming an ascending triangle and a good volume breakout above 7230 can take Nifty higher.

Levels to watch out for

Resistances – 7230-7275-7330-7400
Supports – 7160-7120-7100

To sum up, Nifty intraday bias will continue to be bullish unless Nifty is above 7100-7120 and short term bias too will be bullish till Nifty is above 6960.

As mentioned, we are nearing the expiry for the month and hence, the volatility (which is at a support on daily charts) can go up further, so traders are expected to trade with strict stop losses on either sides.


Cheers

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