2. 1. Nifty made 4 failed attempts to sustain below 16850. 2. Each time strong buying came which took it above 17000.
3. Lower highs indicating weakness in up/buying, this was indication of 16800 break.
4. a. BUY - If sustains above 16800 or on daily candle high break after Pullback. b. Reason - Many buyers were forced to exit their positions as 16800/16400 broke. As Nifty now breaks above 16800 and fails to go down they will be looking to buy again, this will provide the buying force. c. BUY on weak Pullback. Stop - 16800. Target - 17800, 18600.
5. a. Short - If Nifty sustains below 16400. b. Reason - Each time Nifty came below 16800 it was bought, this time if it fails to do so..this will mean buyers are now not strong enough to keep prices above 16800. Change in pattern. c. Short - if sustains below 16400. Stop - 16500 Target - 16000, 15500, 15200.