Weekend Views On Nifty !!!

I am going to be very short and sweet with my weekend analysis of Nifty. The weekly chart below has an Inside Bar. Logically the high 2790 and the low 2633 need to be broken on either side to take the position, with the stop placed at the high or low of the IB depending upon the direction of the trade. 2835 and 2870 are stiff resistances in case of upward breakout. Below 2633 we have 2590/50 and once again all important 2500. No real bullish signals from the RSI and MACD yet.

The daily chart below has our triangle intact, so not commenting much about it till we get the direction of the breakout. The 20 periods MA is at 2830 and is likely to provide some resistance whereas the support is at 2640/50. There is a range contraction happening, waiting for a break!

The hourly chart below is where we have all the action happening, at least some clues there. This is the fourth time we are knocking on the red dashed trend line. It is said (just said its not the law) that if price knocks on a trend line three or more times the chances of it breaking become high. We have a good support underneath at 2710/25 by the way of two converging MA’s; the 20 and the 50 MA. A break above 2780, the price might attempt to aim for the 200 periods MA at approximately 3030 levels. The flip side is the stiff resistance at 2870 and 2960, add to that a lil negative divergence we are seeing on the MACD histogram.

We are now days reacting more to global cues and overnight news, so much care has to be taken in taking positions as all these opening gaps are really making the charts all the more difficult to interpret.

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