Hi All,
As expected, Nifty took support near the upward gap demand zone on the daily charts between 11400-11600. After creating a low of 11625, Nifty surged sharply, and rose almost by 2 % to close around 11850 levels.
In this, Nifty created an Engulfing Bull pattern, which suggests that this upmove to continue at least till 12 k levels.
However, as per the pattern confirmation guidelines, any long entry is only advisable above 11850-60 levels for initial targets of 12k and with stop loss below 11600-400, hence the trade would not offer any favourable risk reward.
I would reiterate that any bullish move only and only valid till the time Nifty holds above the support zone of 11400-11600, so once it crosses 11850-60, one can look at buy on dips opportunities with stop below supports...
Cheers ! ! !
As expected, Nifty took support near the upward gap demand zone on the daily charts between 11400-11600. After creating a low of 11625, Nifty surged sharply, and rose almost by 2 % to close around 11850 levels.
In this, Nifty created an Engulfing Bull pattern, which suggests that this upmove to continue at least till 12 k levels.
However, as per the pattern confirmation guidelines, any long entry is only advisable above 11850-60 levels for initial targets of 12k and with stop loss below 11600-400, hence the trade would not offer any favourable risk reward.
I would reiterate that any bullish move only and only valid till the time Nifty holds above the support zone of 11400-11600, so once it crosses 11850-60, one can look at buy on dips opportunities with stop below supports...
Cheers ! ! !
