Nifty daily chart


The index crossed the resistance zone of 18900 levels which was crucial. I had mentioned that once 18900 is taken out then there will be resumption of uptrend. I was negative but as soon as 18900 was taken out the bias became positive and the index made a high of 19200 levels in the same week.

Prices continue to move in a positive direction negating all the negative divergence which was earlier forming. It is clear that the index will soar as far as there is no reversal on cards. RSI earlier has reversed from 75 levels (marked with horizontal line) and there is still enough room for the index to climb higher as RSI is at 72. 

Now 19000 will act as a support as prices have a gap up support there and 20 period moving average is placed there. Move below 19000 can possibly open correction or else sideways to positive action can be seen. Any move above 19200 (closing basis) will catch up positive momentum for the level of 19350-400 price zone. Failure to protect 19000 will sink the index back towards 18800. Otherwise range bound movement between 19000-19200 is expected.

From Waves perspective, prices are moving in wave v of wave v and it seems it will continue to move higher unless there is no reversal on cards or break of potent supports.

The summation is Nifty is in stealth bull mode with upside target of 19350-400 levels once 19200 is taken out (closing basis) and break of 19000 will open 18800 on the lower side.  Breach of no levels will make the index remain sideways.

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