Trendlines matter a lot in Technical Analysis. They are both source of power and weakness.
Power in the sense that they will bring buying at those support prices. Weakness is the respect that they will induce selling at the resistance.
Nifty has broken one long term trendline while supporting a short term trendline. The break of long term trendline which was in action from March lows. This trendline is very significant as it forms the lower channel of the elliot count. This break of lower channel in up trend is deemed as dangerous. Earlier brreaks used to bounce back in a day but this time it seems that Nifty will close below the trendline which stands right now at 5100 levels.
The second trendline where Nifty got support was the lows of last two days. It perfectly bounced from that line.
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