Nifty - Dragonfly Doji worked as expected amid a false breakout

NSE:NIFTY   Nifty 50 Index
I was expecting a few words of encouragement, from my followers or other readers today. Not many analysts on this or other platforms have mentioned words like top formation, cautious approach, after yesterday's breakout and closing above 12000 level.

Following is the link to this idea which I posted late night yesterday.

The Doji consequence was on expected lines, a correction was due and it did come; Nifty settled near the first support of 11900.

9EMA on 21RSI on Two Hour Nifty chart, gave a SELL signal on opening itself, and continued with it throughout the day, even during the afternoon when there was a sharp breakout (false), this system continued with SELL only.

You might have noticed it in the main chart, this system has given a mild SELL signal on daily chart too. This is significant as such signals are more reliable on daily charts , Nifty was moving in BUY zone as per this signal since 11th Oct. 11286 level.

Nifty has been moving in a channel for some time, today's closing is very near to the low of this channel, it may take a support near lower range of channel i.e. around 11880 levels and reverse. If it decides to breaks the channel 11840, 11780 and 11700 could be the targets on the downside. If it stars moving upwards and crosses 11966, the uptrend may resume and 11980, 12000 and 12030 will be immediate resistance levels.

Beginners may try Puneet_9EMA_21_RSI on a two hour Nifty Chart, it provides reliable Enter and Exit signals for positional trades.

This post is not an advice to speculate using leveraged products, one must thoroughly understand the financial implications, consult some financial advisor before taking any positions.

Please consider hitting the LIKE button below the chart, if you find this post / idea worthy. You may also FOLLOW me over this forum for periodic updates on Nifty , Bank Nifty and bullion.

Please add a comment... Positive feedback and constructive criticism are important to authors as well as the community.

You may also like to join my channel on Telegram - @i2gain. I'll soon start sharing my live trades on telegram.
Good advises
Thanks, Puneet. Keep it going. I noticed a couple of your live trading ideas on Thursday n Friday. Those were nice too. Thanks again.
Too good man, TV channel analysts were full of breakout rally, more upside, buy on dips. I could not muster courage to go short but remembering your writeup, I did closed all my longs around 11980-90, following your live telegram broadcast. Thanks n pls keep up the good work.
Good one
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