Half Hourly Chart
So the right shoulder of the inverse head and shoulder pattern formed and broke above the neckline to give a target of 5415.The falling wedge had earlier given a target of 5380. (Refer to earlier posts). 5097 which was proving a difficult barrier has been crossed.Volumes were low but breadth positive.
Resistance at 5133-5145 from rising wedge , shown on half haourly charts, though, could not be crossed today . 5165 is the 61.8% retracement level of entire fall from 5400-4786. Thus the area of 5133 to 5165 will be very strong resistance.The downtrending line from highs of 5400 has resistance at 5198-5194 and reisistance from the previous peak at 5212 will be the next barriers.Bulls need good momentum to scale these levels. Rsi14 and Macd are moving up in the neutral zone but stochastics is in sell having moved down from overbought zone.Minor negative divergence on Rsi 14 and macd on half hourly charts .These mixed signals may play spoilsport in the attempt to cross these barriers.
All emas on half hourly charts are bullishly aligned. The Nifty has once again closed above the 50dema.Bullish patterns with attractive targests have emerged. One can be cautiously long on the Nifty.
Support at 5097-5050-5020.
Happy Trading !!