No new lows, nothing much to do today. Nifty opened firm. Most of the day, we drifted in a 60 point range. Today again looked like a time out day between the bulls and the bears. With neither, conceding ground. If you take a look at the 5 minute chart (I have deliberately chosen to display last three days), you will notice that we encountered resistance at the gap down we had on the 9th June. In the closing hour we again attempted to break this resistance (a small inv hsp) and failed. Now looking at the broader picture we seem to have formed a bigger inverse HSP spanning last three days. Incidentally the neckline appears to be the same as the gap down resistance I spoke about earlier. There is all likely hood that this would be taken out tomorrow (if everything is sane around us during the night!) with a gap up. In such a scenario I would ideally like to fade that gap up with my target as the neckline. On the daily chart as well as the 5 minute chart the overhead move should find itself not welcome beyond 4600/4625. On the downside, immediate support lies at 4450.
"Aerodynamically the bumblebee shouldn't be able to fly, but the bumblebee doesn't know that so it goes on flying anyway."
Mary Kay Ash
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