With a marathon 2.5% rally in Indices today, Nifty broke a important resistance level 5630 comfortably and is heading towards the next resistance zone of 5950. Nifty's Mojo is definitely back, as liquidity is back in global system and India government is sending all right signals. Please see the chart below which shows key resistance levels for Nifty on a Daily chart. Current resistance level of 5630 is comfortably broken today and this breakout has also broken the upward price channel.
The next resistance zone for Nifty is 5950, which is a strong resistance zone, as price moved between these two levels for a substantial time period in 2007. Once 5950 is broken, Nifty will head towards 6200 and then to the peak of 6330. Peak of 6330 is a very interesting zone as it has formed a double top on weekly charts. This is same place where Bear market of 2008 started and Bear market of 2011 started.
When price reaches for the same level third time, either resistance or support, rest assured the level would be broken. Price is moving for 6330 third time now in last five years, and this will have high probability of 6330 getting broken and new highs getting formed. This can happen in much faster time frame than all of us can imagine. Only price is God in markets. Rest all is noise.
Thanks for reading this post and happy value investing and trading.
The next resistance zone for Nifty is 5950, which is a strong resistance zone, as price moved between these two levels for a substantial time period in 2007. Once 5950 is broken, Nifty will head towards 6200 and then to the peak of 6330. Peak of 6330 is a very interesting zone as it has formed a double top on weekly charts. This is same place where Bear market of 2008 started and Bear market of 2011 started.
When price reaches for the same level third time, either resistance or support, rest assured the level would be broken. Price is moving for 6330 third time now in last five years, and this will have high probability of 6330 getting broken and new highs getting formed. This can happen in much faster time frame than all of us can imagine. Only price is God in markets. Rest all is noise.
Thanks for reading this post and happy value investing and trading.
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