Medium Term Trend: ↓Down (Changes to up above 9800)
In last post we had mentioned " one should be vigilant & careful if he is on short side as markets can reverse and trap shorts on the wrong side anytime".
Today we did see some sharp reversal back above 9000 levels. Inspite of Nifty breaking below 8950 we were hopeful of a comeback. There were couple of strong reasons for same, firstly the entire fall of last 10-12 days from 9800 levels is looking like a corrective move. secondly we pointed out important support levels (ref yesterdays post) for near term and even though Nifty had breached it marginally, it was not very convincing and lastly we highlighted the exact pattern markets had made in May 2018. That was a similar pattern and after it ended , markets started moving up.
So now that we have made a close above 9000 levels, can we expect Nifty to move back to 9500 levels? I think we can, there are indications beginning to appear on charts which are suggesting a strong bull run in coming days. A big resistance markets will come across is 9250-9350 "island reversal area" and Nifty must take it out. Once this gap is closed then we can expect markets to move back towards 9500-9800 or even higher levels. Personally I wont be surprised if Nifty manages to move above 9300 levels this time and then even 9800 levels in coming few weeks.
We entered long position today around 8950 levels and recommend holding on to long positions with a SL of 8830 levels. If the current consolidation is over then we should be moving strongly in Up direction ( with minor pull backs ofcourse). For bears to have upper hand again, markets must make a sharp U turn immediately, more it trades above 9K levels, more stronger Bulls will become.
In last post we had mentioned " one should be vigilant & careful if he is on short side as markets can reverse and trap shorts on the wrong side anytime".
Today we did see some sharp reversal back above 9000 levels. Inspite of Nifty breaking below 8950 we were hopeful of a comeback. There were couple of strong reasons for same, firstly the entire fall of last 10-12 days from 9800 levels is looking like a corrective move. secondly we pointed out important support levels (ref yesterdays post) for near term and even though Nifty had breached it marginally, it was not very convincing and lastly we highlighted the exact pattern markets had made in May 2018. That was a similar pattern and after it ended , markets started moving up.
So now that we have made a close above 9000 levels, can we expect Nifty to move back to 9500 levels? I think we can, there are indications beginning to appear on charts which are suggesting a strong bull run in coming days. A big resistance markets will come across is 9250-9350 "island reversal area" and Nifty must take it out. Once this gap is closed then we can expect markets to move back towards 9500-9800 or even higher levels. Personally I wont be surprised if Nifty manages to move above 9300 levels this time and then even 9800 levels in coming few weeks.
We entered long position today around 8950 levels and recommend holding on to long positions with a SL of 8830 levels. If the current consolidation is over then we should be moving strongly in Up direction ( with minor pull backs ofcourse). For bears to have upper hand again, markets must make a sharp U turn immediately, more it trades above 9K levels, more stronger Bulls will become.
Happy Trading
To join our algorithm based buy/sell whatsapp service during market hours, pls click below link or whatsapp @ 9319321906
No comments:
Post a Comment