Magnified action

Half hourly chart showing a possible inverted H&S pattern

Half hourly chart

There are bullish patterns forming on the charts which are clearly seen on half hourly charts. The nifty has already broken out of the falling wedge. A falling broadening wedge has formed (shown in red) in the action since 18th feb, which is bullish . Breakout of this pattern could give upside of 100 points. If you look at it another way it could be the forming of right shoulder of an inverted head and shoulders patter. Yes looks like I am a Head & Shoulders freak !!

Confused? Well this is what happens at bottom forming times. Let's just follow price. As mentioned in my daily charts we stay long with a stop at 2661.Lighten positions if we go below 2755 which was strong support earlier, being the neckline of bearish H&S pattern discussed earlier. Else stay long and keep trailing stops till the weekly scenario gets better.

Happy trading!!