This week NIFTY's range seems to be narrow within the violet and green line unless it crosses any one line closing basis. Before going into conclusion on trading strategy, here are some observations which may help us immensely to track out the NIFTY's course of movement.
1. NIFTY closed below violet line and low of 27th May's candle and 31st May's candle is same.
2. Gap exists between 5844 and 5853 (marked by blue circle) and 50% retracement of entire rise from 5477 to 6229 falls nearly at 5855. 5855 is good enough support zone as indicated by black line.
3. RSI is standing at nearly 50% mark with negative bias as it failed to cross the blue line.
4. Although CCI has cooled off a bit but it is still above 100 marks and stochastic has given selling cross from halfway mark.
5. If we look carefully, a big bullish flag/falling wedge between yellow and green line is seen.
Conclusion and Trade Plan:
As of now NIFTY appears to be sell on rise. Friday's fall may take support around 5905-5915 (green line) and we may see counter rise from there towards violet line (6045-6055). Any level around violet line should be shorted with proper SL. NIFTY may fill the gap of 5844-5853 within the limit of green line. But WEEKLY CLOSE below green line may drag NIFTY down for deeper levels. But failing to close below green line, weekly closing basis, NIFTY may rise towards higher level and bigger bullish flag/falling wedge (between green and yellow line) may come into place.
Wish you happy trading.
1. NIFTY closed below violet line and low of 27th May's candle and 31st May's candle is same.
2. Gap exists between 5844 and 5853 (marked by blue circle) and 50% retracement of entire rise from 5477 to 6229 falls nearly at 5855. 5855 is good enough support zone as indicated by black line.
3. RSI is standing at nearly 50% mark with negative bias as it failed to cross the blue line.
4. Although CCI has cooled off a bit but it is still above 100 marks and stochastic has given selling cross from halfway mark.
5. If we look carefully, a big bullish flag/falling wedge between yellow and green line is seen.
Conclusion and Trade Plan:
As of now NIFTY appears to be sell on rise. Friday's fall may take support around 5905-5915 (green line) and we may see counter rise from there towards violet line (6045-6055). Any level around violet line should be shorted with proper SL. NIFTY may fill the gap of 5844-5853 within the limit of green line. But WEEKLY CLOSE below green line may drag NIFTY down for deeper levels. But failing to close below green line, weekly closing basis, NIFTY may rise towards higher level and bigger bullish flag/falling wedge (between green and yellow line) may come into place.
Wish you happy trading.
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