Tuesday, May 31, 2016

A Star near a Window.....

Hi All,

As expected, Nifty rallied sharply after the said levels and is marching towards resistance area of a Window (A Gap Down Opening) near 8209-8220.....

Also, Nifty yesterday created a small Star Candle which shows a lot of indecisiveness near the gap, showing a sign of concern for bulls going ahead. For the current rally to continue upward, Nifty should ideally close above the gap, i.e. 8217-8220.....

Nifty is overbought as per the oscillators on daily and weekly chart which suggests at least a pause / break in the current up run.

Traders with longs, are suggested to hold tight trailing stop losses, and the strategy for markets will be buy on dips with stop losses below supports.

Levels to watch out for intraday are –

Supports – 8140-8100-8060-8000-7940-7850
Resistances -  8230-8260-8340


Cheers

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