Hi All,
As posted in the last update, Bears could not win the battle near the 78.6% retracement near 11384-90 and Bulls managed to sky rocket the index to the next hurdle of 11470-11530.
Though Nifty hit the 6th month high today near the daily resistance of 11530, it has ended up with a look alike of Rickshaw man candlestick pattern, usually treated as a trend reversal, if the low is broken and sustained convincingly. (Refer the chart below)
Hence, today's low becomes very crucial for bulls, as failing to hold that would mean than index might see a down ward retracement of the entire rise of last month from 11600 odd levels. So, short positions can be initiated, if and only if Nifty convincingly breaks 11400 mark with a stop loss above 11530-50... Below 11400 Nifty can drift down to 1150-11310-11260-11200-11130.
However, if Bulls yet again manage to take out 11530, Nifty can zoom firstly towards 11610 and then create a Life high above 11760..
Cheers
Hrishi
As posted in the last update, Bears could not win the battle near the 78.6% retracement near 11384-90 and Bulls managed to sky rocket the index to the next hurdle of 11470-11530.
Though Nifty hit the 6th month high today near the daily resistance of 11530, it has ended up with a look alike of Rickshaw man candlestick pattern, usually treated as a trend reversal, if the low is broken and sustained convincingly. (Refer the chart below)
Hence, today's low becomes very crucial for bulls, as failing to hold that would mean than index might see a down ward retracement of the entire rise of last month from 11600 odd levels. So, short positions can be initiated, if and only if Nifty convincingly breaks 11400 mark with a stop loss above 11530-50... Below 11400 Nifty can drift down to 1150-11310-11260-11200-11130.
However, if Bulls yet again manage to take out 11530, Nifty can zoom firstly towards 11610 and then create a Life high above 11760..
Cheers
Hrishi
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