In my last two posts I have been saying 4370 is pivotal for the bulls to hold. Yesterday’s intraday action saw us forming a DB there and taking support. Today also we tested 4370 levels and took off! The chart on the left is a 5 min chart. Look at the congestion (shaded area) with it multiple tops. This was a short scalp trade only meant for nimble fingers. Once the support at 4370 was cemented, Nifty just took out these multiple tops along with the Stops placed there. There was a positive divergence in MACD Histogram; this was followed by a break in the trend line along with the break of the 20 period EMA. Once the congestion was taken out 4440 was a mere formality. The Hourly on the right also shows we have broken out of a triangle. The logical target of this move should be in the vicinity of 4725. But like I had mentioned in my Sundays post 4550/4647/ 4727 is likely to be the road map.
The chart above is the daily chart. We have kissed the sloping trend line from January highs. We are way above our 20 and 50 period MA’s which now are likely to provide support. Again I reiterate ADX is suggesting time to book profits and let the consolidation happen. Anybody who was long with Stops below 4370 can now trail with 4440 (conservative) or 4470 (aggressive).
"You cannot discover new oceans unless you have the courage to lose sight of the shore."
Origin Unknown
2 comments:
I made some comments on Tuesday after seeing the market behaving exactly as you have said...4370 to be held & a rally to ensue, which happened. Very convincing. You are with flow and pulse of the market..Not prejudiced..Good work, Manoj
Ilango
Yeah had read ur earlier comment too. Thanks for appreciating my work!!!
Post a Comment