Trend line support & resistance & Failed Breakdown
Nifty after a good run since April 2021 started to contract. As evident by the trend line the price movement is getting narrower.
The move can be played by the trend line support & resistance.
As seen upper trend line has been tested twice & lower trend line has been tested 3 times.
eventually on the fourth time the trend line as tested with lower high and the trend line broke, but the next day the Nifty came back above the trend line,
Trapping the people who went on to short on breakdown.
Yesterday's close was stronger as the Nifty managed to close above the breakdown candle high, hence to conclude the breakdown was rejected or failed.
Now expecting nifty to hit upper trend line
SL will be the yesterday's low.
The move can be played by the trend line support & resistance.
As seen upper trend line has been tested twice & lower trend line has been tested 3 times.
eventually on the fourth time the trend line as tested with lower high and the trend line broke, but the next day the Nifty came back above the trend line,
Trapping the people who went on to short on breakdown.
Yesterday's close was stronger as the Nifty managed to close above the breakdown candle high, hence to conclude the breakdown was rejected or failed.
Now expecting nifty to hit upper trend line
SL will be the yesterday's low.
Trade closed: stop reached