TRADING IS LIKE WORRIER, WHERE YOU NEED TO FIGHT BRAVELY AND SAFELY, ONE MISTAKE AND YOUR LIFE GONE.
STUDYING THE MARKET OR ANALYZING THE MARKET IS LIKE, NEW BORN CHILD, WHO FALL ALWAYS WHILE LEARNING TO WALK AND READY TO LEARN AGAIN AND AGAIN.
SO STUDY MARKET LIKE SMALL CHILD WHO READY TO LEARN ALWAYS, AND TRADE LIKE A BRAVE WORRIER WHO ALWAYS TRY TO WIN THE WAR TO SAVE HIS LIFE.
As we mention last week that nifty having a biggest support near to 7100 and positive candle near to support level given a proper reversal in market.
As per our level, after reversal from support it able to get till 7600 level almost.
As per the current chart development we can see that, nifty has made “MORNING STAR” candle stick pattern after forming a “HAMMER” candle on chart.
After this reversal, nifty able to break its recent high level and able to made new lifetime high level.
Last week it has made “STRONG BULLISH” candle on chart, we can even say that running bullish candles.
As per the chart pattern we can see that nifty has given a “FLAG” breakout on chart, which can even indicate that, market can form a another pole of almost 400 to 800 points upside.
As per the rsi we can observe that, recently due to consolidation of 3 weeks, rsi has slowed down its movements now, but yes still its not below overbought line on chart, so this can indicate that market is still bullish at upper level but any trader or investor need to be careful at upper levels and need to hold everything with support level only.
So with the overall basic study of chart we can say that, the recent move of market can lead for another breakout but it can be also risky at upper levels also, so rather than deciding the trend, just follow the proper levels which given you the proper direction.
For current week 7600 can play a key role on closing basis, if nifty able to move and close above 7600 level then upside we can see 7800-8000-8200 but, if nifty close below 7600 level then down side we can again see 7500-7350-7100 levels in coming days.
So overall view is till the time market is moving positive and giving a green candle on chart one can stay long, long term player can keep 6900-7000 levels as a stop loss for there long term holding, because if it able to move below this level then only big trend reversal is possible.