NIFTY50 - Super Duper Breakout or Retracement ?
Looking at the Daily chart we saw a good recovery last week followed by some indecision this week so far.
Prima facie , we see exhaustion at a strong resistance zone with 2 doji's - the second doji made a lower low and lower high. Even the 15 min chart got weak towards end of day.
However, going deeper, the microscopic lenses draw attention to the volume which speaks a different language on the lower time frame.
The doji's formed are still above a long trendline which can act as a good support. Contrary to public bearish opinion, one could also expect a huge massive breakout candle in the next 2-3 sessions breaking the strong resistance zone with enhanced force and vigor.
However, if the retracement plays itself there are some strong supports (marked as a retracement zone) but at the same time we can't ignore a double top formation at strong resistance. An M pattern could also be equally powerful on the downside.
Anyways, doji's are meant to keep us guessing. Time will tell what happens but I'm biased towards a powerful bullish breakout and will trail my SL in stocks to let them handle this confusion for me.
Prima facie , we see exhaustion at a strong resistance zone with 2 doji's - the second doji made a lower low and lower high. Even the 15 min chart got weak towards end of day.
However, going deeper, the microscopic lenses draw attention to the volume which speaks a different language on the lower time frame.
The doji's formed are still above a long trendline which can act as a good support. Contrary to public bearish opinion, one could also expect a huge massive breakout candle in the next 2-3 sessions breaking the strong resistance zone with enhanced force and vigor.
However, if the retracement plays itself there are some strong supports (marked as a retracement zone) but at the same time we can't ignore a double top formation at strong resistance. An M pattern could also be equally powerful on the downside.
Anyways, doji's are meant to keep us guessing. Time will tell what happens but I'm biased towards a powerful bullish breakout and will trail my SL in stocks to let them handle this confusion for me.
*DISCLAIMER*
For educational purposes only. Not a recommendation.
Treat StopLoss as your best friend to get you out of troubles.
For educational purposes only. Not a recommendation.
Treat StopLoss as your best friend to get you out of troubles.
