Update - 11.35 AM 3rd July 2018...
As expected.... bulls got a small bounce of around 70-80 basis points in Nifty, conservatively one can book part profits and trail stop loss near cost....
Cheers ! ! !
Hi all,
As posted earlier, from 10900, Nifty finally stopped / paused its downfall at 10550 levels which is a daily price bottom and on the same day, hourly chart showed a hammer pattern due to which I suggested we should book profits in the short trade initiated earlier.
Moreover, due to some of the following observations, looks like there is a ray of hope for bulls, at least for a short term... (Please refer the chart below)
1. Daily charts, Nifty showed a Bullish separating lines pattern, and now the lows near 10550, becomes even more crucial.
2. Nifty took support near the Supertrend for the first time and closed above it, hence, as long as Nifty continue to close above 10573 levels, it should have a bullish bias.
3. Nifty took support and showed important bullish patterns across multiple time frames (Hammer on hourly charts on 28th June and Bullish Separating lines on daily charts, near the important support area of 10550
Hence, bulls can take, what can be the last chance to get a sizable bounce for near to short term, especially after the downfall of around 1% from the recent high of 10736 levels, and now offers a nice risk reward for a long trade.
Buy Nifty near 10620-630 with stop loss of 10540 and targets of 10740-10800-10840-10900
The only sign of concern is that the support near 10550 is an used area pf support, and hence there are chances the same can be broken, however, it's worth taking a small risk of less than 100 points for a small reward of 1.5 to 2 times of that risk...
Cheers!!!
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