Bullishness Galore . . . ! ! ! Caution Advised

Hi All,

As posted yesterday, risky traders can be long in Nifty with SL below the supports mentioned....

In order to help bulls further, after an occurrence on hourly charts yesterday, Nifty daily chart also will show a Hammer looking today giving a bit more confidence to Bulls for the next week.

In fact following are the reasons bulls should enjoy the weekend quite peacefully (Please refer the charts for better understanding)

1. A Hammer on hourly charts yesterday
2. Hammer on Daily charts today
3. An ascending Triangle formed on intraday charts today which will breakout above 8600 levels (initial target of ~8660)
4. Yesterday and Today's candle resembles a Harami Pattern near a prior daily support
5. RSI on daily charts has taken support near 40 levels
6. One of the lowest RSI reading of 22-23 on hourly charts....

If all these factors dont scare bears and they continue to ruin the happiness, then really, RIP Bulls.... Ha ha ha...


Jokes apart, it fairly suggests that the Nifty can witness an upmove, if 8470-8500 levels are held on closing basis and Nifty sustains above 8600 levels, with targets of 8660-8690-8750-8810.

The one and only concern for Bulls will be that the said support zone of 8470-8550 is a prior tested zone and acted like support too many times earlier, hence a break of that can mean a strong downside as it will also mean a breakdown from the Head And Shoulders Pattern on daily charts, as mentioned yesterday...

So, it is advisable to be on the long side of the markets unless Nifty is above 8470-8550, with a strict stop loss below the supports.

Cheers

Head and Shoulders / All Clear of Bulls or Clinic Plus point for bears ? ? ?

Hi All,

As per the last update of 3rd October, Nifty rallied almost till 8800 levels without breaking the crucial zone of 8500-8550.

Now, after falling for 5th day in a row, Nifty is again near the supports of 8500-8550. However we need to understand that the support zone now is surely getting weaker after so many instances.

Also, what is more concerning for bears in a Head N Shoulder pattern unfolding on daily charts and a close below 8550 will really mean an All Clear of Bulls at least for short term.

However, again a small ray of hope for bulls is the Hammer on the hourly charts near these crucial support areas. The Hammer will get confirmed if Nifty crosses 8580 levels and sustains above the same for today,which in turn will mean that Daily closing will be above the Head and Shoulder neckline, negating it at least for today.

So in a nutshell, 8500-8550 remains to be crucial supports before bears star a complete dominance.

Risky traders can go Long in Nifty with SL below supports and targets on the higher side near 8650-8690-8750-8810.

Cheers