As expected Nifty moved up really well from low of 9685 levels to make a new high of 10180 levels.
So now at this stage, confusion is building up to go long or short.
Let’s study the charts below and analyse what’s coming next.
1st weekly chart is below for your reference
The weekly chart has a negative diversion on MACD in the form of peak and trough but RSI 14 yet to confirm the negative diversion. Candle formation is clearly showing indecision between bulls and bears. So tomorrow will be an important day for nifty. It will give us a bit of indication where it will be heading next.
Now come to Daily Chart…
On Daily Chart, Nifty has confirmed the negative diversion on MACD and RSI. So if prices go below today’s low, the Bears will have a strong hand and nifty can retest levels of 9980-9960 levels.
Now Let’s see Hourly Chart…
Bears in full control on the 1st hour of markets where Nifty retested the support levels of 10050, Nifty has made a hidden positive divergence and bulls tried to take nifty back above 10100 levels and retested the resistance zone of 10170-10130. Below 10040 short-term trend will be bearish and nifty can retest lower levels.
At this stage, one should wait and watch for possible direction.
Possible Trade will be,
Sell Below 10040 for Targets 9975-9950 levels.
Learning Here – Candlestick pattern, Negative Diversion, Double Top pattern.
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