Hi folks,
I hope you would have watched today’s Nifty movements which was completely in the control of bulls.
I think its better to continue our analysis from where we left yesterday. I will write the analysis content as short as possible today. Let’s begin.
As per our prediction, the RSI has violated the upper boundary of descending channel(violet colour) but it did not break the upper boundary of ascending channel(black colour with reference points a, c and d). We may take long positions with target 9400 to 9500 and with stoploss of 8580, if the RSI moves to the next segment breaking the upper boundary of black coloured ascending channel. But, immediately it will not happen as per my prediction. It’s a very good idea to take positions after the retracement which may take place in the next two trading sessions.
We may expect 30% to 50% correction in the upcoming trading session, where the index decline to 8550. 8500 -8600 level will act as strong support level if the market opens in gap down. Either the gap down open or the retracement will result in PDD in the RSI and On the other hand price should manage to stay above 8500 level. As its consequence, The RSI would rebounce from the lower boundary of both ascending and descending channel or from the circled point. After the rebounce of index, The long position can be taken when the index reaches back at 8650 to 8700 level with the better stoploss.
Thank you
I hope you would have watched today’s Nifty movements which was completely in the control of bulls.
I think its better to continue our analysis from where we left yesterday. I will write the analysis content as short as possible today. Let’s begin.
As per our prediction, the RSI has violated the upper boundary of descending channel(violet colour) but it did not break the upper boundary of ascending channel(black colour with reference points a, c and d). We may take long positions with target 9400 to 9500 and with stoploss of 8580, if the RSI moves to the next segment breaking the upper boundary of black coloured ascending channel. But, immediately it will not happen as per my prediction. It’s a very good idea to take positions after the retracement which may take place in the next two trading sessions.
We may expect 30% to 50% correction in the upcoming trading session, where the index decline to 8550. 8500 -8600 level will act as strong support level if the market opens in gap down. Either the gap down open or the retracement will result in PDD in the RSI and On the other hand price should manage to stay above 8500 level. As its consequence, The RSI would rebounce from the lower boundary of both ascending and descending channel or from the circled point. After the rebounce of index, The long position can be taken when the index reaches back at 8650 to 8700 level with the better stoploss.
Thank you