Half Hourly Chart
Today's candle was a fair follow up to yesterday's bullish breakout breakout. Nifty registered a higher high higher low and a new high of 5625.The last half hour saw profit booking from the highs forming a long upper shadow , but not long enough to get bearish . Volumes were good but breadth only marginally positive.
The half hourly chart gives a better picture of today's action.After the initial surge it was consolidation all day with a final surge up to the high of 5625 only in the last hour. The last half hour saw profit booking . This pushed Nifty to touch the 23.6% level of the rise from 5473 to 5625. Buying support at this level helped to close above the 5600 level.
The action from the low of 5349 is within a rising channel which is very slightly converging prompting me to call it a channel rather than a rising wedge. The rise though is very steep and has hit the upper trendline calling for a sideways movement or a downward correction.
Daily oscillators continue to show negative divergence. Macd is in a buy.Half hourly oscillators too are in negative divergence.
Supports are at 5590-5566-5550-5530 Resistance at 5625-5675.
Happy Trading !!