Daily Chart
An outside day with a higher high and a higher low but no big enough range to signal a clear reversal. Also the close formed a doji showing indecision and confusion with the upper and lower shadows almost equal.The intraday volatility signalled profit booking rather than selling.Volumes were low with advancing volumes higher than declining volumes. Breadth was negative
Girish, a boarder on Vipreet's discussion forum commented while putting forth his view that the short term trend has turned bearish :
Last week Nifty used to do this --Gap up to previous days highs and continue the run for another 40-60 points in the very first hour. Now what is it doing - Gap up to previous day's high and sell off 50-70 points. Is that a bullish sign?
Nice way of putting it across that a breather may be starting.
The uptrending channel has support at 5937 and resistance at 6105. 5937 is also the 38.2% fibo level of rise from 5775 to 6037.
A short term trade could be taken in the direction of the break of today's outside day high /low.
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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