Nifty Weekly Analysis

WEEKLY CHART

DAILY CHART

WEEKLY CHART

• NIFTY Weekly chart is showing multiple patterns.
• But Every pattern has one thing in common.
• All of them are pointing towards an upside break out.
• So if the break out happens were do nifty go from there?
• The answer may lie in the triangle that is developing. These triangles so often give a false break out.
• If we look at the moving average situation that is also giving mixed signals. 10 day moving average is pointing up. 20 day moving average is pointing down. 200 day moving average has been moving sideways for sometime. But the price is above all of them indicating short term bullishness. Remember it is only for the very short term. The euro situation has not changed one bad news from europe will give a gap down opening. So don't carry your positions overnight Till the trend becomes clear.
• May be the inverted head and shoulders can show us a clear way. But in the recent past that has also failed . We had a failed inverted head and shoulder pattern in SP 500.
• So one can take a high reward low risk trade at the time of break out. Keeping a stop loss just below the break out. If the break out is false you close your position and go home. If it is a legitimate break out you enjoy the profit

Thank you