NIFTY Near 200 SMA

• Nifty at weekly resistance line.
• Price is also approaching 200 SMA .
• These levels have acted as resistance in the past. If history is repeated we are close to a correction. Blindly going short at these levels just because it's overbought may not work. We are yet to see weakness in daily time frame. Look for weakness near 200 SMA.  One should also look at the weekly charts too, Current week is the fourth bullish candle in progress. So one may also look for bearish looking weekly candles for confirming possible reversal.
• For a bull who has been carrying longs may reduce their positions here. One should not book out fully because closing above 200 SMA will extend this up move. Remaining longs can be squared off if one sees weakness near 200 SMA.