NIFTY WEEKLY CHART AND TECHNICAL STUDY
Always try to work or take position near to the important support / resistance level will always provide you with low risk and high returns, don’t take un necessary position’s in such market, in stock which are not near to important level, because they will take much more time in deciding the direction and this time taken will hurt your investment for trading decision.
Last week mention that nifty has made some bullish patterns on charts and we mention that 6190 was big resistance if cross that then market will try to fill the gap till 6270 level, just see after crossing 6190 last week it made 6283 which almost near to our level.
Now last week we seen that market able to cross the good resistance level upper side, and given a good bullish candles’s at upper levels. Now at current level there are many important developments happening.
We can see that how market has filled the gap which it has given while coming down.
Now as per rsi there is a sign of “CONVERGENCE” at upper level, but rsi able to touch the resistance line, price yet not moved till resistance range.
As we can see in the chart that, rsi able to cross the 1st resistance and just touch the 2nd one, but nifty yet not able to touch the 1st resistance as per the chart levels.
So at present market we can see is in bullish mode, but don’t make fresh longs at this levels, once nifty able to move above 6300 level on closing basis and if next day able to break the previous day’s high then only take positive at long side for the up move till 6360 and if able to close above 6360 for two session’s then we can see movement till 6425-6485.
If market able to touch the resistance level of 6300 and if it able to give negative or red candle near to this resistance so next day below the low of red candle one can take sell position, and if close negative then one can hold position, with the recent high level as stop loss, if fall continues then down side we can see 6200-6100-5900 levels.
So overall for current week we can say that 6300 level is trend deciding level if close above this for two session then will try to move upside till next resistance level.
Closing red below 6300 or 6250 will give reverse signal from here till next support levels.