The uptrend continued as anticipated. Nifty broke out of the range high of 5367, registered a new high in this rally at 5402 .Volumes were good and breadth was marginally positive. The daily Macd has given a buy once again. However, the macd, stochastics and Rsi14 are all showing negative divergence as they have not scaled their tops corresponding with Nifty's top at 5367.The Sensex too failed to make a new top above 18047.
On redrawing the trendlines, the upper trendline offers resistance at 5459 which coincides with the 161.8% fibo level of latest fall till 5210 from 5367, which is at 5463.
Weekly resistance is at 5495 , range break target is 5525, as well as inverted head and shoulders target is 5513-- refer weekly analysis posted yesterday.
Supports are at 5367-5280. Resistance at 5402-5460-5495.
Trade long for above mentioned targets with a strict stop loss of 5280 or hedge your longs as negative divergences persist.
Happy Trading !!