Nifty: Back into Resistance ZoneHi
We saw a strong bearish sell-off on Monday morning which soon turned into a slow and steady bullish mood. We hindered at the Gartley PRZ @ 10775-10785 (mentioned in last week's post) for two days before breakout.
I updated on Friday to beware of a failure that might occur above the downtrend line and it just did that. Bears took control and the potential 10775 support could not hold.
Plan for next week:
Normally there has always been an aggressive sell opportunity at BO failure (in technical analysis), which should take the market back to 10620. But looking at market volatility it has become difficult to trade a directional play.
So its better to wait till further confirmation which could be below our strong structure-psychological support near 10700. A break below 10700 may open the doors for 10600. In this case 10520 and 10470 can not be ruled out.
On the other hand , will I buy if we continue above 10820? Yes, but I would be a passive buyer in this case with strict stops at hand. I have to be cautious because I know that any failure from this level may fetch sharp reaction.
To be an aggressive buyer I need a strong push above 10820, few green candles on this time frame. At that point I will plan to buy the pullbacks. On the upside 10880-10900; 11000; 11100 and 11160 would be the levels to watch out for.
Hope this analysis will help some traders in making better decisions in the coming days.
Keep liking , following and sharing.
Trade safe, stay healthy.
Regards
