Trend:☝(UP) - Reversal below 17250
Nifty @ 18350: Consolidating its gains!
In the past post we had mentioned "In summary, overall trend is still down but its giving sign that correction is maturing and markets are looking for an excuse to breakout from this correction. Continuous strength from here is likely to push Nifty back towards 18K and 18500 levels"
From the 17400 levels we have now moved up to almost 18400 levels (gain of ~1000 points in Nifty) which confirms that our analysis was broadly correct and Nifty is moving in line with our expectations only. Key to market analysis always lies in reading past charts and looking for similarities. Like they say, history often repeats in the market and what we are seeing today has already happened before (more than once) in the markets.Now looking at overall charts, we don't see any sign of immediate reversal as yet infact, it is possible that now Nifty form some sort of base around 18K levels and launches itself from here. Since last one year we have seen 18-18500 levels as a strong resistance from the market and Nifty has not managed to successfully move over it. Now if Nifty manages to successfully move over it & sustains (and the chances are it will so we are actually counting on it) then this resistance can actually become solid support for the future and any correction then is likely to find support at this level.
From trading's perspective it doesn't make sense to hold on to short position or even create new one around 18400-500 (thinking its a resistance level). Market is not looking in the mood to reward bearish traders for now hence would actually make sense to enter long positions on dips (with proper SLs ofcourse). For near term we see very good support at 18100-150 levels and intraday sell off should be able to find support around/above this level only. Its possible that market continues to move from where and even cross 19K levels eventually.
Happy Trading!
