Nifty Daily Chart
Today was a wonderful day with no whipsaws for a change . It was nice to sit back and decide when to take profits. I booked profits in another 25% of the shorts and am left with 50% which I have decided to hold till I get a reversal signal.
Technicals have played out well. The Head and Shoulders target as shown on the charts since a few days has almost achieved the target of 2535. The triangle target of around 2000 is yet far away. So we may see pull backs before we reach 2000.
Today , the support of 2571 was breached intra-day but closing was marginally above it. Lets see if it holds tomorrow. The next support is the November lows of 2503. October lows is only at 2253. So if 2503 is broken we could have a free fall !
The fall from 2970 has been within a falling channel shown on the daily charts. Support from the channel comes at 2520 and resistance at 2680. Nifty is reaching oversold conditions so keep tight trailing stops on your shorts.
Happy Trading !!