Hi All,
As expected in the earlier post, Shooting Star... Ready to Fall?, After drifting down below 10770, (the low of Shooting Star like bearish candle on the weekly chart), Nifty quickly drifted down to crucial 10700 levels.
Looks like Nifty took support in the range of 10670-10710 (Upward trend line support, upward gap support, 61.8% retracement of the last rally from 10550 to 10900).
Moreover, on 19th June when Nifty drifted down to 10700 levels, hourly charts showed as couple of bullish patterns (Harami & Hammer coupled with a RSI divergence) which would have given a near term long entry above 10740-10750, however with a very small upside of 10790 to 10800.
Nifty, though not after a sustained downtrend which is advised, had created a Bullish Harami Pattern and going forward, will face resistance near 10800-10840-10870-10900-10930, where as supports will continue to be near 10700-10660-10610-10550.
The bias continues to be indecisive, and traders are advised to keep strict stop losses as per the resistances and supports mentioned above for short or long positions respectively.
One sign of concern crops up on hourly charts, as if Nifty breaks the crucial supports near 10660-10700, it would then break a neckline of a probable Head and Shoulder Pattern, which might target Nifty, even below the earlier mentioned levels of 10550 in last post.
(Please see the chart below for reference)
On the higher side, bulls can only take full control above 10930-10950, and then target, may be the life time high, probability of this however might be low on account of absence of any positive trigger in domestic / global markets. 10840-50 becomes a key level for intraday to be taken out for bulls to proceed further...
Traders are advised to trade in these sideways environment with strict stop losses..
Cheers
As expected in the earlier post, Shooting Star... Ready to Fall?, After drifting down below 10770, (the low of Shooting Star like bearish candle on the weekly chart), Nifty quickly drifted down to crucial 10700 levels.
Looks like Nifty took support in the range of 10670-10710 (Upward trend line support, upward gap support, 61.8% retracement of the last rally from 10550 to 10900).
Moreover, on 19th June when Nifty drifted down to 10700 levels, hourly charts showed as couple of bullish patterns (Harami & Hammer coupled with a RSI divergence) which would have given a near term long entry above 10740-10750, however with a very small upside of 10790 to 10800.
Nifty, though not after a sustained downtrend which is advised, had created a Bullish Harami Pattern and going forward, will face resistance near 10800-10840-10870-10900-10930, where as supports will continue to be near 10700-10660-10610-10550.
The bias continues to be indecisive, and traders are advised to keep strict stop losses as per the resistances and supports mentioned above for short or long positions respectively.
One sign of concern crops up on hourly charts, as if Nifty breaks the crucial supports near 10660-10700, it would then break a neckline of a probable Head and Shoulder Pattern, which might target Nifty, even below the earlier mentioned levels of 10550 in last post.
(Please see the chart below for reference)
On the higher side, bulls can only take full control above 10930-10950, and then target, may be the life time high, probability of this however might be low on account of absence of any positive trigger in domestic / global markets. 10840-50 becomes a key level for intraday to be taken out for bulls to proceed further...
Traders are advised to trade in these sideways environment with strict stop losses..
Cheers
