Update - 5th May 9.20 AM
A PRO Inside gap up, bias remains bullish, buy on dips with stops below 9240....
Also, Nifty has taken support and closed above the 61.8% retracement mark of the recent rise (Yellow colour, 9280) and 23.6% retracement of the entire rise from 7500 (Green colour, 9328)
A close now, above 9330-40 could mean the next leg upwards is in the making.....
A cause of concern is, on daily Nifty took resistance exactly near the Supertrend, hence any upside will be capped only till the recent high near 9880...
Cheers
Hrishi
Update - 4th May after closing hours
Bearish Island pattern is now confirmed...
Nifty closed below the trendline, however did hold 9250, below 9250 it can go down further... On hourly charts, Nifty closed with a kind of Bullish Harami cross pattern and hence, any further shorts can only be initiated below 9250-40..., like mentioned earlier 9100-9120 remains crucial for bulls, and break of that can change the trend, based on lower bottoms on daily charts, however hourly charts will break the prior bottoms below 9250...
So in a nutshell, if bulls are going to bounce, they should do it with supports near 9250-9100, below that its the bear territory.....
Cheers
Hrishi
Hi all,
Hope you and your loved ones are safe and taking all the necessary precautions.
The start if the week is not so good for Bulls....
As mentioned in the earlier post and the update on What's App broadcast, Nifty after facing some hurdles, handsomely surpassed the 38.2% retracement near 9320-30. It also took out various important resistances based on Moving averages near 9400 mark and travelled very fast towards the 50% retracement mark near 9880. On Thursday, it just went above it, and gave away almost 100 points from it on the same day, before bouncing back a bit in the closing hour.
Thanks to the global cues, Nifty has gapped down by more than 400 points and currently trades near 9400 mark yet again...
This now leaves Nifty with a Bearish Island on the daily chart, at a key resistance of 50% retracement mark.
So... todays gap down will act as a crucial resistance, and any further upside is only possible above the same. For bulls to fight back, I feel something has to be done today itself to close the gap, otherwise the Bearish Island would get activated which could be very bearish.
Going forward, 9350-9250, would be very crucial levels of supports and bears should go below it if they want to continue. Nifty is also trading at the trendline support as shown in the chart above. For short term, 9250-9100 are crucial, whereas for mid term bias 8800 remains strong. The bias would change post that...
Though the bias is positive based on the Higher Top - Higher Bottom, the above mentioned concern related to bearish island pattern offers a great threat to the Bull's story.
The plan of action for bulls would be Buy only and only if there is any bullish evidence on hourly charts near the supports mentioned. (not advisable till material updates on charts), and for bears, sell on rise near resistances would be advised.
Supports - 9350-9250-9130-9050-8900-8800
Resistances - 9385-9430-9470-9530-9600-9740-9775-9890-9900-10000
Cheers & Take care...
Hrishi
Also, Nifty has taken support and closed above the 61.8% retracement mark of the recent rise (Yellow colour, 9280) and 23.6% retracement of the entire rise from 7500 (Green colour, 9328)
A close now, above 9330-40 could mean the next leg upwards is in the making.....
A cause of concern is, on daily Nifty took resistance exactly near the Supertrend, hence any upside will be capped only till the recent high near 9880...
Cheers
Hrishi
Update - 4th May after closing hours
Bearish Island pattern is now confirmed...
Nifty closed below the trendline, however did hold 9250, below 9250 it can go down further... On hourly charts, Nifty closed with a kind of Bullish Harami cross pattern and hence, any further shorts can only be initiated below 9250-40..., like mentioned earlier 9100-9120 remains crucial for bulls, and break of that can change the trend, based on lower bottoms on daily charts, however hourly charts will break the prior bottoms below 9250...
So in a nutshell, if bulls are going to bounce, they should do it with supports near 9250-9100, below that its the bear territory.....
Cheers
Hrishi
Hi all,
Hope you and your loved ones are safe and taking all the necessary precautions.
The start if the week is not so good for Bulls....
As mentioned in the earlier post and the update on What's App broadcast, Nifty after facing some hurdles, handsomely surpassed the 38.2% retracement near 9320-30. It also took out various important resistances based on Moving averages near 9400 mark and travelled very fast towards the 50% retracement mark near 9880. On Thursday, it just went above it, and gave away almost 100 points from it on the same day, before bouncing back a bit in the closing hour.
Thanks to the global cues, Nifty has gapped down by more than 400 points and currently trades near 9400 mark yet again...
This now leaves Nifty with a Bearish Island on the daily chart, at a key resistance of 50% retracement mark.
So... todays gap down will act as a crucial resistance, and any further upside is only possible above the same. For bulls to fight back, I feel something has to be done today itself to close the gap, otherwise the Bearish Island would get activated which could be very bearish.
Going forward, 9350-9250, would be very crucial levels of supports and bears should go below it if they want to continue. Nifty is also trading at the trendline support as shown in the chart above. For short term, 9250-9100 are crucial, whereas for mid term bias 8800 remains strong. The bias would change post that...
Though the bias is positive based on the Higher Top - Higher Bottom, the above mentioned concern related to bearish island pattern offers a great threat to the Bull's story.
The plan of action for bulls would be Buy only and only if there is any bullish evidence on hourly charts near the supports mentioned. (not advisable till material updates on charts), and for bears, sell on rise near resistances would be advised.
Supports - 9350-9250-9130-9050-8900-8800
Resistances - 9385-9430-9470-9530-9600-9740-9775-9890-9900-10000
Cheers & Take care...
Hrishi
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