The closing was confusing, to begin with Nifty made a Hanging man candlestick pattern.
As per this pattern, it has to trade above today's high i.e. 10509 to turn positive, the stop should be the low of the pattern or day i.e. below 10389.
Nifty almost filled the Gap that it created on Sep. 23rd. this should be positive as the the baggage of the Gap is over.
Despite a nearly 300 point correction from recent top, Nifty has closed over 200 points above it's 20 DMA. Had it touched 20 DMA levels, this would have been more comforting for trend reversal.
I finally checked the RSI and CCI indicators on daily charts, coincidentally the CCI has just turned a tad bit weak (with its value slightly below 100), for the first time after the rally that initiated on 20th Sep.; many of you would know this indicates the trend reversal on the down side, I would advise keeping an eye on how it moves.
Similarly, RSI too has turned a tad bit weak, with its value falling to sub 60, and a trend-line indicating downward bias. This may turn as (and if) Nifty breaches today's high, all the more important to wait for 10510 to be reached and sustain.
To summarize, one should consider going long only if 10510 is breached and nifty trades above this level for some time, with a tight stop loss of 10390. Safe traders may keep the sto
Wish you profitable trades tomorrow and always,
Please consider liking this idea or post if you find it worthy and useful. You may also consider FOLLOWING me over this forum for periodic updates on Nifty or Bank Nifty movements.
As per this pattern, it has to trade above today's high i.e. 10509 to turn positive, the stop should be the low of the pattern or day i.e. below 10389.
Nifty almost filled the Gap that it created on Sep. 23rd. this should be positive as the the baggage of the Gap is over.
Despite a nearly 300 point correction from recent top, Nifty has closed over 200 points above it's 20 DMA. Had it touched 20 DMA levels, this would have been more comforting for trend reversal.
I finally checked the RSI and CCI indicators on daily charts, coincidentally the CCI has just turned a tad bit weak (with its value slightly below 100), for the first time after the rally that initiated on 20th Sep.; many of you would know this indicates the trend reversal on the down side, I would advise keeping an eye on how it moves.
Similarly, RSI too has turned a tad bit weak, with its value falling to sub 60, and a trend-line indicating downward bias. This may turn as (and if) Nifty breaches today's high, all the more important to wait for 10510 to be reached and sustain.
To summarize, one should consider going long only if 10510 is breached and nifty trades above this level for some time, with a tight stop loss of 10390. Safe traders may keep the sto
Wish you profitable trades tomorrow and always,
Please consider liking this idea or post if you find it worthy and useful. You may also consider FOLLOWING me over this forum for periodic updates on Nifty or Bank Nifty movements.