BREAKOUT OR REVERSAL??? for more please keep visiting www.stockmarket360.in
Nifty moved in respect of long term trend – still bank nifty lacking support, trading in a range bound manner?
“Expectations are hurt when market change the direction”
MARKET OUTLOOK WITH NIFTY AND BANK NIFTY –
As far as this week concern, we can say that bank nifty will be major trend decider for now, at present nifty able to cross its resistance and able to trade in positive zone now, but as we inform last week about divergence in a trend of nifty and bank nifty so it the time we are not getting breakout in bank nifty we can’t confirm the overall trend of our market, once we able to get a same direction in nifty and bank nifty, will only be able to give a breakout move in our market.
NIFTY STUDY FOR THE WEEK –
As far as nifty’s trend concern we already inform about the “POSITIVE CONVERGENCE” on chart, and at present there are lots of thing to watch out on current chart. We can see that it’s an “INVERTED HEARD AND SHOULDER” pattern on nifty chart, and just in last trading session it able to move above its neck line resistance level. If we can see it clearly its showing us “BULLISH OR RISING WEDGE” pattern on chart and has done the positive breakout also, another thing we can notice is, it has also formed “SEMANTIC TRIANGLE” pattern on chart, and also able to move above this very well till now. Also in a last trading day we have seen “HANGING MAN” candle on chart, which need confirmation candle for any reversal to confirm.
Even RSI yet trading in middle level, so it’s still having scope to move in upper direction when can take market to the resistance levels.
So overall chart study indicating that, if market able to stay positive on 1st day of week then it will confirm all this patterns mention above but if any negative close can give reverse direction to the market.
Nifty support levels at 5900-5800-5750 and resistance at 6150-6230 levels, beyond this range only we can expect a major break in the market.