Nifty Daily ChartThe Nifty rallied well since open of markets raising hopes of making a higher top. Though it surpassed the earlier minor top at 2970 which was resistance for quite some time now, the close could not conquer the same. The day's candle has formed a shooting star pattern which is bearish . A shooting star has
- a long upper shadow which should be at least three times the real body
- a small real body towards the lower range of the price action
- a small or no lower shadow
- price should have been in an uptrend
Only a close above the high of the shooting star will nullify it's bearish effects. So shorts should keep stops at the high of the shooting star.
The stochastic has started moving down from overbought territory signaling that prices are no longer closing near the upper range and a reversal may be on the way. The RSI(14) has still not reached overbought territory but has turned flat. Tomorrows price action should confirm whether the bearishness of the shooting star is for real.
Fibonacci supports to the rise from 2539 are at 2905-2835-2780-2724. The level of 2771 where the nifty took support last week coincides with the 50 % retracement level at 2780 . So expect the 2771-2780 levels to be good support. However if this level breaks we may see 2540 levels. Lets not think of further levels now. One day at a time is sufficient.
Resistances are at 2970-3017-3040-3145. 3145 is trendline resistance ( marked on chart) and 3147 is previous top. So this should be stiff resistance.
If still having longs then keep strict stop loss at 2900 and if short then stop loss at 3020.
Happy trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
The stochastic has started moving down from overbought territory signaling that prices are no longer closing near the upper range and a reversal may be on the way. The RSI(14) has still not reached overbought territory but has turned flat. Tomorrows price action should confirm whether the bearishness of the shooting star is for real.
Fibonacci supports to the rise from 2539 are at 2905-2835-2780-2724. The level of 2771 where the nifty took support last week coincides with the 50 % retracement level at 2780 . So expect the 2771-2780 levels to be good support. However if this level breaks we may see 2540 levels. Lets not think of further levels now. One day at a time is sufficient.
Resistances are at 2970-3017-3040-3145. 3145 is trendline resistance ( marked on chart) and 3147 is previous top. So this should be stiff resistance.
If still having longs then keep strict stop loss at 2900 and if short then stop loss at 3020.
Happy trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
2 comments:
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Ashish.
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