Today we had another good bullish day on Nifty, where the Nifty opened with a gap and continued with strength, only to lose some of the strength later in the day. This created a typical commonly seen candle in the form of a cross. This candle when combined with a gap opening often signals a exhaustion gap, which means that temporarily the uptrend may pause. Pls look at chart below:
Pls see the above chart, where we have marked two important areas. One area is where, the down sloping trendline has hit the price and price scales back. This introduces temporary weakness and resistance area. This is what we mentioned in our post yesterday.Nifty Post yesterday
Another key area we have marked is that crossover MACD indicator is about to perform. This is typically a weakest part of the chain, where the crossover about to happen may fail suddenly.
However, four green bullish candles in a row is a testimony to the basics of technical analysis that we follow. Trend is the friend, until it reverses. Currently, the trend is bullish and one needs to pursue their long with a tight stop-loss arrangement. There is a good possibility that tomorrow price may ignore all the weak areas and resistances and open above the bullish wedge and trendline and pursue higher. Its important to note that 5350 has been conquered back for now. We are at a key area in chart with lot of elements to analyse and consider. Happy trading and investing!
Pls see the above chart, where we have marked two important areas. One area is where, the down sloping trendline has hit the price and price scales back. This introduces temporary weakness and resistance area. This is what we mentioned in our post yesterday.Nifty Post yesterday
Another key area we have marked is that crossover MACD indicator is about to perform. This is typically a weakest part of the chain, where the crossover about to happen may fail suddenly.
However, four green bullish candles in a row is a testimony to the basics of technical analysis that we follow. Trend is the friend, until it reverses. Currently, the trend is bullish and one needs to pursue their long with a tight stop-loss arrangement. There is a good possibility that tomorrow price may ignore all the weak areas and resistances and open above the bullish wedge and trendline and pursue higher. Its important to note that 5350 has been conquered back for now. We are at a key area in chart with lot of elements to analyse and consider. Happy trading and investing!
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