The trendline remained intact and the Nifty closed 42 points higher.The supports of this trendline is at 3009-3036 for tomorrow. The half hourly Line chart shows Nifty trading above the downtrend line from January 2008 highs, after successfully testing it on Monday. Supports this trendline offers is at 2947-2958. The Nifty is once again trading in a flag like formation, shown on 30 minute chart, which is bullish in an uptrend. Managed to close above the triangle formation on candle charts.
Still trading within the triangle on Line Charts . The previous high of 3123 needs to be overcome. The January 2008 downtrend line needs to be scaled.Today's action was not robust enough to turn bullish . We will have to wait for a lot of confirmations.
Confusing , isn't it? No not my analysis , but the market action! Yes, we are at crossroads and the direction is not clear. So trade light and preferably via option spreads. Low profits but lower risks, which is important when we are at crossroads. Yes when we are crossing roads at crossroads it is better to wait and see whether the signal is Red or Green.
Take short trades if the uptrend line breaks down with stop loss at 3055. Take long trades on breakout from the flag formation with stop loss at 2950. All other levels are pointed out on the charts.