Scenario 1 : We may be retesting the breakdown area. In that case, we should see some signs of reversal in the 10700-10765 zone. If we resume the downtrend from there we will be heading towards 10520 and 10430 next week.
Scenario 2: Breakdown that we had last week fails. The short covering above 10850-10900 zone will give enough energy to break the long term resistance on sustained basis. Sustaining above 10765 would be the first sign for bears to get cautious.
So let's see what happens.
All the best for next week.
Similar pattern near previous bases.
Just an observation.
At previous two touches we entered into bear markets of 2011 and 2015. I dun want to reach at any conclusion at this point of time but we ll keep a close eye on Daily chart to see how Nifty reacts at resistances.
All the best.
Anyways, buyers are attacking 10700 levels and i dun see any severe reaction by the bears. Bulls had conviction to buy at 10680, which is not good for bears.
Even if bears push the 10680 level, the 10630 seems to be holding.
All in all we have been churning in a wider range of 10600 to 10700.
Ranges are painful and eat capital. Careful.
Holding right at the resistance zone. Let's see if it gives a failure above resistance or slams down from here. Wait and watch for confirmation in this volatile environment.
Bulls knocking at the door. Will it open? Let's see. Beware of failures though.
All the best.