Here is the plan guys, there will be 2 back-to-back Nifty charts (1) one on 15 min timeframe (2) other will be on 4hr timeframe. If you look at the chart above there is , Flag & pattern. I don't trade sharks usually more often they attack us & stops out the trade. But, we have , actually if you zoom around it doesn't look like flag, so lets name it as channel ( dark yellow channel ). We are looking for simple breakout on anyside to enter the trade in Nifty . We may see breach of trendline if is forming, bcos sharks end above X, bcos of this uncertain completion of sharks , I don't trade them often but only on reversal confirmation.
Two scenario's :
(i) If channel breaks upside aim for targets around blue trendline 8730's, depending on price action around the trendline we will decide further move but book initial profits around the blue line
(a) Yes, sub-division of above scenario, Feels like I'm writing some answer script ;) - If the breakout of channel happens upside & reversal happens around the trendline - initiate short positions in Nifty . Only on valid confirmation we should enter short positions.
(b) If incase Nifty goes against us & 8730's breached to upside then next resistance is 8780's-8800's.
(ii) If the channel breaks downside target 8610's zone, that will be meagre points only & Nifty will bounce back little after reaching there.
These won't happen 2mrw itself over the next two days & go in with proper stops, false breakouts are not out of equation & I haven't considered Gap scenario's here. But if you ask my opinion an upside breakout of channel & Sharks toppling Nifty Bull-ship will be good, but let;s see guys. I will post out 4hr charts in sometime, will add that link below in comment, that will give you another perspective of Nifty but in-sync with what we discussed here.
Sorry Guys about today morning, I was travelling so cudn't post in the morning, anyway I posted by US morning ( our evening which is now ), but that doesn't mean I reached U.S, I'm in Incredible India :)
This will be easily winner for messy pics section, Nifty is ranging like that & muddy waters makes it more hard to fish.
(i) Can you see two fighting arena's for Bull n Bear, there will be a wild move when any of them gets breached, minimum 200 points we can expect.
(ii) Note where the Sharks, trendlines merge ?! Right in the resistance zone ( Bull vs Bear arena )
(iii) More reasons are for confirmation & confidence only, doesn't mean it works 100%
(iv) Keep eye on valid reversal confirmation & hunt Bull / Bears in their own arena but don't get hunted back, so valid reversal confirmation & proper stops are must
(v) The wild move of 200 pts will be after Diwali I believe. Bcos Bulls n Bears out for Diwali shopping ( Just My Kinda reasoning )