Daily Chart II
Half Hourly Chart
Extremely volatile day leaving both bulls and bears whipsawed.The nifty broke the inside day range of 5279-5160 but closed within the range .Like I said yesterday markets are in a flux and directional trading will be diffficult till nifty finds direction.
Daily oscillators are moving up and and the half hourly oscillators have moved down from overbought region due to the sharp sell off in the last hour.
Low of 5160 is still held.This supports continuation of the upmove from 5160.However keep in mind that today's action could be the forming of the right shoulder in the bearish head and shoulder pattern with the green neck line. The bearish rising wedge forming supports the view that the right shoulder may indeed be forming.
Support on the lower trendline of the rising wedge at 5245-5268 and on the neckline at 5157. Resistance is at 5332-5344 as shown on the daily charts.
Long or short be hedged so that losses are minimum. Time to give more importance to risk management.
Happy Trading !!