Nifty Views !!!

In the last one week NIFTY has done nothing besides moving in a range. Yes everyday some chanalyst would come and say today it rallied and today it was fall! Its there job and they are good at it- Scintillating and Scandalising, after all this sells!

Below is the Nifty Daily chart and some observations;

• The RED shaded area is what exactly was the FALL and the GREEN shaded area is the Rally!
• The YELLOW shaded corner is the RANGE.
• If you notice that after piercing above the 20/200 EMA confluence (look at the yellow shaded area) the price has has tested it twice, bounced back from there and managed to close above it.
• The Close at 7814 is wee above the 200 EMA at 7779 and the 20 EMA at 7806.
• Yes a Lower High is indeed in place but not a Lower Low !Why 7850 is important? Because its the last month close. 

 

 

 

The Daily Chart below has;

 

• The overhead resistance zone in RED.
• The Unfilled Gap below in Blue.
• Here also price tested the 200 EMA and bounced back from there. 
• The price is now nestled between the 200 EMA on hourly chart at 7795 and the overhead converging 20/50 EMA's at approx 7840. These are important because very often if a price gaps up or down then it moves sideways or pulls back during intra day towards the ema for consolidation.

In Technical Analysis we deal with probabilities based on the past price action imprinted on the charts. There are no certainities here !

Cheers !!!