NIFTY Spot : 6494.9
Hi,
Readers,
Nifty did exactly the same
as was mentioned in my previous blog.
Nifty moved in small
range.
It was recommended to positional
traders to stay out of Nifty.
Also it was mentioned
that for professional traders small trading opportunities will be there and
keep booking small profits. That strategy yielded profits.
Now What :-
Nifty is moving in
small range.
Now it is the time for
Nifty to take a move.
The interesting thing
now in Nifty’s chart is that, it is poised in such a way, that it can take move
on either side.
Why so, Why Nifty can
move upward also?
Answer is that, Nifty’s
chart is now also making good Flag pattern on daily chart.
If, Nifty gives
breakout of this flag pattern than the trend
which I have been saying that it is up, will resume and Nifty can show
higher levels.
Nifty chart attached showing
flag pattern.
On the other hand if
Nifty does not give breakout of this Flag pattern than it will be inclined to
correct.
Now, for Nifty the
time has come to take move in coming days.
And the small movement
period is going to be over any time.
Levels to watch to trade Nifty
:-
On the up side 6535 is
very important level and breakout in Nifty will come above 6570.
Aggressive traders can keep
on buying N
But do keep very tight
stop loss of say 25 to 30 points only.
Because in these kind
of scenarios false breakouts and breakdowns are market maker’s sweet dish.
On down side 6450 is very
important level. If Nifty goes below 6450 and stays below that further downside
can be seen.
Keep in mind that stop
loss here also should be very tight of 25 to 30 points.
Trade accordingly.
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