NIFTY weekly view July 20 - 24
In my last week’s post (link below) I had said
10580-10560 is a very important zone for me to watch. If NIFTY drops below this zone this week, I think NIFTY has started a bearish move, momentum of which is not known this time.
If NIFTY continues in the 10700-10920 zone for this week, then I think NIFTY may keep distributing in the zone for some time.
There is a possibility of a bull trap in this zone, sharp up move, which looks like a breakout of 10850, but it fails quickly in a day.
Review of my last week’s post
10560-10580 levels, indeed proved to be very important. NIFTY did not close below this level.
NIFTY is still not out of the 10700-10920 zone. So I assume this still holds.
The possibility of bull trap, I had said, actually played out. NIFTY broke above 10850, but did not settle above on July 13th.
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My Observations for the week
The trend I track on 4 time frames are
Monthly : Down
Weekly : Up
Daily : Up
Hourly : Up.
Even though overall trends are up in shorter time frames, there are some reasons to set the expectations of not so sharp move or even false breakout.
1. Multiple resistance levels are around 10990-11120. This is not far away.
2. Divergence of NIFTY and BANK NIFTY
3. The breakout happened late Friday 1 hour. Such moves need to be supported by a full candle staying above the breakout level - 10880.
4. Hanging man formation on weekly chart after 5 weeks on rally.
My view for the next week
For me Monday’s session is important. If Monday manages to stay above 10880 and preferably makes a new high, then breakout is confirmed, then all trades should be on the long side.
If NIFTY continues and gaps to 10990, then it may be a great setup for reversal trade.
So a lot depends on Monday’s price action. But overall, I think the 10700-10920 zone is going to be a consolidation of possible reversal zone and 11200 won't be sustained in the first go.
I do not have any trade ideas for the week. I’ll decide on the action plan post Monday’s price action.
My Last week's post
10580-10560 is a very important zone for me to watch. If NIFTY drops below this zone this week, I think NIFTY has started a bearish move, momentum of which is not known this time.
If NIFTY continues in the 10700-10920 zone for this week, then I think NIFTY may keep distributing in the zone for some time.
There is a possibility of a bull trap in this zone, sharp up move, which looks like a breakout of 10850, but it fails quickly in a day.
Review of my last week’s post
10560-10580 levels, indeed proved to be very important. NIFTY did not close below this level.
NIFTY is still not out of the 10700-10920 zone. So I assume this still holds.
The possibility of bull trap, I had said, actually played out. NIFTY broke above 10850, but did not settle above on July 13th.
====================================================================================================================================================
My Observations for the week
The trend I track on 4 time frames are
Monthly : Down
Weekly : Up
Daily : Up
Hourly : Up.
Even though overall trends are up in shorter time frames, there are some reasons to set the expectations of not so sharp move or even false breakout.
1. Multiple resistance levels are around 10990-11120. This is not far away.
2. Divergence of NIFTY and BANK NIFTY
3. The breakout happened late Friday 1 hour. Such moves need to be supported by a full candle staying above the breakout level - 10880.
4. Hanging man formation on weekly chart after 5 weeks on rally.
My view for the next week
For me Monday’s session is important. If Monday manages to stay above 10880 and preferably makes a new high, then breakout is confirmed, then all trades should be on the long side.
If NIFTY continues and gaps to 10990, then it may be a great setup for reversal trade.
So a lot depends on Monday’s price action. But overall, I think the 10700-10920 zone is going to be a consolidation of possible reversal zone and 11200 won't be sustained in the first go.
I do not have any trade ideas for the week. I’ll decide on the action plan post Monday’s price action.
My Last week's post
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