PATTERNS ARE JUST GUIDE LINES – MANY TIMES ONE PATTERN WORK AND OTHER FAIL, SO BTTER TO KEEP YOUR SELF WITH SUCCESSFUL PATTERN, WHICH IS ULTIMATELY, DECIDED THROUGH LEVELS.
RESPECT THE MARKET LEVELS, AND MARKET WILL PROVIDE YOU A SUCCESSFUL PATTERN.
COMING WEEK TREND DECIDING LEVELS ARE 5950-6250 and 6400, TRADE NEAR THIS LEVELS FOR A SHORT TERM, BEYOND THIS RANGE ONE CAN LOOK FOR A MAJOR MOVES.
Last article we clearly inform that 5950 and 6250 are important level in nifty, also inform buying above 6120 and, 6250 mention resistance, nifty able to make till 6212.5 and fall from there till 5972.5 levels.
Now with the current chart development we can see that nifty tested important bottom again at 5970 level last session, still the bottom is not broken we can till assume it as a double bottom.
As per the technical chart nifty has made “RISING WEDGE” pattern on hourly chart in 1st half of the week, which it has broken at 6185 level and from there it, has given a quick fall for intended target of 6000 in 2 trading session.
As per the daily chart, there was a development of “EVENING STAR” candlestick pattern on chart, on important resistance of trend line, so last two session fall was required to confirm this patterns.
As per RSI, it not able to test a new low on chart, but price tested recent low, so it’s kind of “POSITIVE CONVERGENCE” on chart now, which can indicate some bounce also, but confirmation of the pattern only after a green candle on chart.
Another thing we can notice is there is a development of “SYMMETRIC TRIANGLE” on chart, with two upper tops and two bottoms now, so if the current low of 5970 is sustain on closing basis then it can surly try to touch the upper limit of triangle at 6150-6200 range and next journey will be decided after that only.
If we look clearly on chart, then we can surly see the “HEAD AND SHOULDER” pattern development now, creation of 2nd shoulder was come from last week move, so with respect to this pattern again we can say that if market want to confirm this pattern then it has to trade below 5950 and should able to give close below this for 2 session, but if this support is taken before confirmation of level then some bounce we can see for sure. {Because majority of time before pattern confirmation it lead for a small bounce before it confirm the level}
So with the recent study and pattern concern, we can clearly say that nifty is having highly important support at 5950 level, so with this support one can think to go long here at 5970-6000 range, if 5950 is sustain then upper side nifty can try to touch the 6150-6200 range, and next move will be confirm above 6250 only.
But if nifty able to give close below 5950 then we can see selling pressure in market which can lead for next support till 5800-5700-5500 levels in coming days.
So for upcoming week again 5950 and 6250 will play a key role, and on long term basis, major up move can be seen above 6400 only, till this level is not cross nifty will surly get selling pressure at higher level, and below 5950-5900 levels market can give selloff for a targets till 5500-5200 also.
One should consider trading near given levels, assuming the small stop losses.