NIFTY HAS TAKEN SUPPORT ON 200 DMA, SO WILL IT BE A DEAD CAT BOUNCE OR WE CAN SEE FRESH UP MOVE FOR A BREAKOUT???
TILL THE TIME WEEKLY CLOSE IS ABOVE 6000 LEVEL BULL TRADERS ARE STILL SAFE, BUT ONCE NIFTY ABLE TO GIVE WEEKLY CLOSE BELOW 6000 THEN WE CAN SEE A GOOD SELL OFF IN OUR MARKET.
Last week we mention that, if nifty close below 6000 on weekly basis then we can see more fall in a market, till that time we can see consolidation between 6000-6100 range and see market exactly done movement in a range of 6000-6100 range only.
We also mention that if market give green candle on lower levels then avoid fresh selling at lower levels, because this is the indication of bounce.
As per the current chart development we can see that last week market has given a good recovery after a bigger fall.
Now as per candlestick pattern’s we can see that, market has given a “HANGING MAN” candle in last trading session, it’s also seems to be a “THREE WHITE SOLIDER” candle formation at bottom levels.
Now its three white soldiers ended with hanging man on chart, so after recover also market will try to face the resistance at upper levels.
On daily chart it has made the expanding “wedge” pattern on chart, where price able to hit the upper level now.
Now at present weekly chart of nifty is seems to be more important now, on weekly chart nifty has given a ”DRAGONFLY DOJI” candle on chart, which indicate that market is still taking support near to 6000 level and next candle beyond the doji level will be a trend decider candle for market.
Now from here we can see that nifty is having a good resistance in a range of 6100-6150 range, where it will try to fill up the gap upside, and if it able to give red candle at this level then we can again see a good fall in coming days. But if it able to move above 6150-6200 range then it will try to fill another gap upside till 6250-6300 range.
So overall upside we can see 6100-6150 is good resistance which can keep capability of bringing more fall in coming days, if this level is cross then more upside till 6250-6300 range is possible. If market start fall from 6100-6150 level then down side we can see 6000-5900-5700-5500 levels in coming days.