Medium Term Trend: ↓Down (Changes to up above 9800)
& it jumped: Nifty moved perfectly in line with expectations and jumped almost 300 points to close above 9300 levels.
Please see what we had mentioned in last couples of posts:
Post dt 20th May:
& it jumped: Nifty moved perfectly in line with expectations and jumped almost 300 points to close above 9300 levels.
Please see what we had mentioned in last couples of posts:
Post dt 20th May:
"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"
Post dt 25th May:
"think its too early to conclude that markets are done with the current move. There is probably plenty of steam yet left in the markets and it can still move up from here. This nervousness and weakness could only strengthen the markets from here"
Also in the first half today (when the Nifty was trading around 9100) we had sent a tweet mentioning about the probability of an up-move and warned traders having short positions in the markets and within couple of hours Nifty obliged. Now this just shows the power of technical analysis and chart reading.
Regular readers must be aware that we have also been mentioning about an important resistance which exists in 9250-9370 levels ( bearish island reversal). Further gains are possible if this gap area is complete filled. We were hopeful of Nifty filling this gap when Nifty fell below 9k and still are hopeful. Today inspire of this strong up-move the gap is still not filled (though Nifty closed bang in the middle of it). Going forward we need to see if Nifty manages to move above 9370 levels and fills the gap. That will be a strong statement by the markets and an indication that markets wants to move much higher (back towards 9500-9800 zone where the second island reversal lies).
In Nutshell, Nifty continue to exhibit positive signs and if it manages to move above 9370 levels then further gains can be expected. As far as trading is concerned, we had entered long position at 8950 levels which contnues (amidst part profit booking) even now.
Happy Trading
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