Nifty Trendline Breakout, but a confirmation is required.

Nifty has indeed given a long term Trendline Breakout on closing basis on 18th Oct., but :

• This breakout has come after a steep uptrend of approx. 600 points, in an local as well as global environment that is not as comfortable to support a big uninterrupted rally.
  
  FIIs buying on 18th Oct is so small, though on a weekly basis, their buying is pretty decent (after a long time).
  
  Nifty Future volume on 18th Oct is average only, and the open interest has come down by approx. 3.5%
  
  11670-11720 is a major resistance / supply zone, a consolidation or correction can not be ruled out at this level.
  
  Bank Nifty, which accounts for 40% of Nifty weight, is not showing much strength, Nifty can not rise in isolation for long.
  

The experienced traders know that the "false breakouts" are very common, and many a times inexperienced investors/traders are trapped in them. A confirmation of Trendline Breakout is important.

There are three major means to confirm :
1. Let Nifty go at least one percent up from the trendline.
2. Volume need to be higher than the average.
3. Three consecutive closings above the trendline.

I would advise, TRADE with caution, follow the reversal signal of the system or indicator that you trust . Do keep and follow the stop loss for all long positions.

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This post does not encourage speculative trading, one must access his risk profile and consult his investment consultant before taking any call that involves the kind of money required to trade in leveraged positions.
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