Suspecting the last two days action as consolidation proved right with the Nifty rising a 110 points .Volumes were good and breadth positive.Such huge gains have been seen after a long while. Had got used to the tiny ranges in which Nifty has been trading for such a long time.
The Nifty brokeout from the flag formed during consolidation. This has also led to a breakout from the range of 5350-5550 and from the red channel's upper trendline. Historically, there is only a minor resistance at 6250 between today's high and the all time highs of 6357. So we could look to fibonacci resistances which is at 5673 (161.8%) and 5873 (261.8%) of the fall from 5550 to 5350. Also the resistance from the expanding triangle was hit exactly at 5589 and Nifty has closed just below it. A breakout from this triangle is all that is needed now to catapult Nifty to higher targets. Resistance for tomorrow from this triangle is at 5590-5594.
Targets work out as 5604 (flag breakout target)- 5673 (161.8%) - 5750(200 point range break) -5873 (261.8%)- 5954( inverse head and shoulder with pin neckline shown on daily charts since some time).
Supports are at 5562-5545-5532-5517. Resistance at 5595-5673.
Happy Trading !!