There is something worthy of noticing w.r.t. the rising channel Nifty is moving in and RSI divergence, this time.
1. While the Nifty has made a higher top, RSI has failed to do so. This RSI divergence is seen after a long time, as RSI is considered as a leading indicator, this can't be ignored.
2. Nifty has not touched to resistance line of this channel this time too and the gap between recent top and resistance line is visibly higher than the last time it made an high (8th June).
Important levels can be seen on chart, 9840 is important to hold for a medium term prospective. Keep an eye on this rising channel, sustaining above the support line is of significant importance. It is still a bear market rally, (if and) once this support is gone, we may see a steep fall.
Today is a derivative settlement day, markets tend to move in bigger ranges on such days, in my opinion it will be better to square off or hedge long position today and initiate short side trades on rallies.
I always discourage trading using naked future or option positions, risk defined or low risk strategies are much better alternatives available to all traders. You can write to me over private chat on tradingview or other popular social media mediums using <i2gain> for such strategies.
Please remember to carry due diligence and consult your financial advisor / consultant before taking any position in the markets, utilising leveraged products.
1. While the Nifty has made a higher top, RSI has failed to do so. This RSI divergence is seen after a long time, as RSI is considered as a leading indicator, this can't be ignored.
2. Nifty has not touched to resistance line of this channel this time too and the gap between recent top and resistance line is visibly higher than the last time it made an high (8th June).
Important levels can be seen on chart, 9840 is important to hold for a medium term prospective. Keep an eye on this rising channel, sustaining above the support line is of significant importance. It is still a bear market rally, (if and) once this support is gone, we may see a steep fall.
Today is a derivative settlement day, markets tend to move in bigger ranges on such days, in my opinion it will be better to square off or hedge long position today and initiate short side trades on rallies.
I always discourage trading using naked future or option positions, risk defined or low risk strategies are much better alternatives available to all traders. You can write to me over private chat on tradingview or other popular social media mediums using <i2gain> for such strategies.
Please remember to carry due diligence and consult your financial advisor / consultant before taking any position in the markets, utilising leveraged products.