In this newsletter read about how long can the bulls take Nifty. Also read about how was our last month in terms of advisory performance.
Being 'with markets' is key for successful trader. Last week I had mentioned about sharp move expectation in Nifty. This move has started with Nifty gaining 138 points in last trading session of last week. Most world markets closed in green on Friday.
Do we use this opportunity to build longs?
Technical Overview: Last week Nifty made high of 7575 and low of 7402 to close at 7563. A range of 173 points to form a green bullish candle. I had mentioned formation of bullish doji pattern on weekly chart in last week. This week's green candle is confirmation forming Morning Star Pattern. This pattern indicates bullish formation suggesting more upside.
Nifty is currently trading near small resistance at 7604. If this resistance is taken out, next resistance is at 7712-7800 range.
New support is formed at 7468-7409 range.
My View: Ongoing up-move is correction in current downtrend. Major trend remains down. However week to come- Nifty may trade in green. Once it reach its resistance as mentioned above, it will give us clear indication before resuming downtrend again. Till then aggressive traders can enjoy trades on Long (buy) side.
Wise man's act: Last month we managed to close both Nifty and Banknifty trades in profits. We maintained our discipline which finally paid off. Read more about Nifty and Banknifty trade here. In this post I have mentioned last week's advisory performance.
Check the influence areas (supports and resistance on chart below)
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