Nifty index has been trading in a range for quite some time.
The index tested the trendline resistance from Nov and Dec highs but failed to cross it. The second test within a week again failed to move above it.
While on the downside the 200 SMA has been strong support for some time.
The daily charts also show another support zone at 5700 levels where the volume profile shows good buying action in the past.
The worrisome part is that the rise from 5700 levels has getting smaller and smaller and in April we had the third bounce which was half of last time and did not last for even 3 days. This does paint a bearish picture.
Any direction breakout from the above two trendlines will set the direction for future.
Attached is the chart.
Well its not all bearish for Nifty, there is a bullishness also in form of invested Head and Shoulder. This particular pattern is in formation so have a watch on this.
The bullishness will come only on break above the neckline at 5950 levels.
The volumes which has been lower as per the textbook pattern. Need to watch the volumes on upside breakout here.
The index tested the trendline resistance from Nov and Dec highs but failed to cross it. The second test within a week again failed to move above it.
While on the downside the 200 SMA has been strong support for some time.
The daily charts also show another support zone at 5700 levels where the volume profile shows good buying action in the past.
The worrisome part is that the rise from 5700 levels has getting smaller and smaller and in April we had the third bounce which was half of last time and did not last for even 3 days. This does paint a bearish picture.
Worth noting is the near stagnation at 200 SMA levels without taking out the peak of first test after the breakout from 200 SMA.
Attached is the chart.
Well its not all bearish for Nifty, there is a bullishness also in form of invested Head and Shoulder. This particular pattern is in formation so have a watch on this.
The bullishness will come only on break above the neckline at 5950 levels.
The volumes which has been lower as per the textbook pattern. Need to watch the volumes on upside breakout here.
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