Update 23rd Sep 2019 9.25 AM
Target for Inverse HNS almost achieved in the early trades... Book another half and trail stops below 11200...
Nifty took resistance near 11660-70, the key resistance is near 11710, any further upside can be possible only above this now.......
Nifty took resistance near 11660-70, the key resistance is near 11710, any further upside can be possible only above this now.......
Cheers......
Looks like.... at least for Short term.. Provided we close and sustain above 11200-230 on Nifty.....
As posted yesterday, the last Ray of Hope for Bulls, the Dragonfly doji pattern on the hourly chart, near a crucial daily support, worked superbly and thanks to the corporate tax announcement, Nifty bounced back sharply by around 550 points, and currently trades above 11200....
PRICE DISCOUNTS EVERYTHING.... We just need to be capable of reading it..... _/\_
Plan of Action -
To begin with, those who are already long in Nifty near 10720-770, as per the previous post, can hold on to it with a trail stop below 11100........ Fresh longs are not advised right now, as the risk reward would not be favourable, once can look at buying on dips, with additional confirmations on intraday charts....
Now important observations supporting the Action plan.... Followed by the chart....
1. If Nifty closes near the current rate of 11200, it completes a Higher Top - Higher Bottom on daily and weekly charts, which is a welcome positive sign for bulls in short term
2. The 200 DMA and DEMA for Nifty are near 11200-11230 levels, hence a convincing close above (sustainable) it would create a sizable bullish sentiment for short term. (40 Weekly MA is near the same levels 0f 11230-50 hence they become very crucial...)
3. Today's surge, also help Nifty breakout of a consolidation range of past few weeks (11180-10640), hence a sustained close above 11200, could target 11600 for Nifty
4. Lastly, in this entire bargain, Nifty has also formed an Inverse Head and Shoulder Pattern on daily charts, and it would also be confirmed after a close above 11070-11100 levels. The target for this could also be above 11600....
5. If the litmus test of a convincing close above 200 DMA is passed, then The next crucial resistance for Nifty would be near 11400 (50% retracement of the entire fall from 12100 to 10640), 11550 (61.8% retracement of the fall) and 11700 ( next price top in Nifty of July 2019)
6. Also there is an inter market divergence between Nifty and Sensex, where Sensex broke the August lows, Nifty held on to it. (the reverse had happened at the top in the month of June 2019, where on consecutive 2 days, 3&4th June, Sensex hit a new high and Nifty failed to do it, this was followed by > 10% correction)
The main concern for bulls now, can be a huge supply area between 11250-11400, hence fresh longs are not advisable at this moment.....
Supports - 11150-11100-11000-10870-10750-10660-10630
Resistances - 11280-11320-11360-11400-11450-11500-11540-11600
10600-10660 levels becomes the penultimate reversals for the view mentioned above...
Happy Weekend.....
Cheers . . . ! ! !
As posted yesterday, the last Ray of Hope for Bulls, the Dragonfly doji pattern on the hourly chart, near a crucial daily support, worked superbly and thanks to the corporate tax announcement, Nifty bounced back sharply by around 550 points, and currently trades above 11200....
PRICE DISCOUNTS EVERYTHING.... We just need to be capable of reading it..... _/\_
Plan of Action -
To begin with, those who are already long in Nifty near 10720-770, as per the previous post, can hold on to it with a trail stop below 11100........ Fresh longs are not advised right now, as the risk reward would not be favourable, once can look at buying on dips, with additional confirmations on intraday charts....
Now important observations supporting the Action plan.... Followed by the chart....
1. If Nifty closes near the current rate of 11200, it completes a Higher Top - Higher Bottom on daily and weekly charts, which is a welcome positive sign for bulls in short term
2. The 200 DMA and DEMA for Nifty are near 11200-11230 levels, hence a convincing close above (sustainable) it would create a sizable bullish sentiment for short term. (40 Weekly MA is near the same levels 0f 11230-50 hence they become very crucial...)
3. Today's surge, also help Nifty breakout of a consolidation range of past few weeks (11180-10640), hence a sustained close above 11200, could target 11600 for Nifty
4. Lastly, in this entire bargain, Nifty has also formed an Inverse Head and Shoulder Pattern on daily charts, and it would also be confirmed after a close above 11070-11100 levels. The target for this could also be above 11600....
5. If the litmus test of a convincing close above 200 DMA is passed, then The next crucial resistance for Nifty would be near 11400 (50% retracement of the entire fall from 12100 to 10640), 11550 (61.8% retracement of the fall) and 11700 ( next price top in Nifty of July 2019)
6. Also there is an inter market divergence between Nifty and Sensex, where Sensex broke the August lows, Nifty held on to it. (the reverse had happened at the top in the month of June 2019, where on consecutive 2 days, 3&4th June, Sensex hit a new high and Nifty failed to do it, this was followed by > 10% correction)
The main concern for bulls now, can be a huge supply area between 11250-11400, hence fresh longs are not advisable at this moment.....
Supports - 11150-11100-11000-10870-10750-10660-10630
Resistances - 11280-11320-11360-11400-11450-11500-11540-11600
10600-10660 levels becomes the penultimate reversals for the view mentioned above...
Happy Weekend.....
Cheers . . . ! ! !
