Nifty has been experiencing low volatility on 30 min chart from last 4 sessions, so many concerns and apathy of bull riders are still there in market, let see what happens up or down for a while ..or else market will continue its vacillations.
I'm new so pls bear with whatever knowledge I have... but when I see the above chart and also refer to the 5 min charts what I notice is that the earlier resistance which was noticed at 9920-9930 level is currently becoming the support for the Nifty (seen thrice at the above chart and may be few more times at 5 min chart),so unless there is a strong negative trigger, I believe may be nifty will take a hike from here ( with a fair amount of hesitation) or may consolidate further.Pls let me know your views :)
niladri
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@jsahni123, Today it took a hike as u know, though you are right but it can't be determined 9920 to act as a support, let me explain why ... studying the price structure for short time frame(5,15,30 min) u could find that a reducing volatile channel was forming in the price range between 9880 to 9960,here i attempted to plot a converging symmetrical triangle where in the last trading session it closed at 9920.
expecting any breakout at this level this price should receive some traders action on it either potential buyer could dominate the market giving it a hike or potential seller could dominate the market.So each event has 50% possibility and in last session it gave a surprised by giving a gap up opening above 9960, which it confirmed a breakout as buyer were in the control of the market which could have target around 10070-100080.As u are new in here u need to understand that technical analysis are based on statistics and probability.I hope it clears all your doubt, and sorry for my late reply.
jsahni123
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@niladri, Thanks again for the wonderful explanation :).I will definitely keep this point in my mind while making any future trade.I'm hopeful of NIfty atleast touching a 10050-10060 levels but my trailing stop loss was triggered in the last few minutes :(.Maybe I should have removed the trailing SL.