NIFTY approaches 10,000, looking for support after new highs
The NIFTY 50 has been able to break out again beyond the highs made previously, and have now made a solid area of demand below the current price action which is becoming steep, and almost appearing vertical. There is actually a strong trend line of support dating back to 10+ years, and it would seem that as the current index is capable of crawling along this distant trend line which has closely followed the major tops and bottoms of the current channel. The NIFTY will likely be able to break past the 10,000 psychological area within the coming year or by next year, and this will further be supported by some peaking price action likely. If possible, the index may turn downwards slightly or continue further up. I am not quite sure as to how the supply will be created, since there is not much above the current area other than the psychological zone of 10,000. Also, global indices may be peaking, and it would be unlikely that the NIFTY alone will be able to continue on higher without them all going upwards unless it were to consolidate for some time around this area. However, this sort of strategy is dangerous, and any sideways movement is likely undesirable. Once the current narrower channel is left, the index will return to the larger channel which has been going on for several years already. The index will then be able to either reach 10,000, or turn around before being able to meet this point. However, any correction should likely be temporary, and it'd take some price action around the 10,000 area before further analysis can be uncovered.
edit: I am currently long using an ETF, however my entry/exit is on the daily range, and quite much more narrow than the current range being shown on the chart. I entered on a long position with stock INDY on 4/25/17.
edit: I am currently long using an ETF, however my entry/exit is on the daily range, and quite much more narrow than the current range being shown on the chart. I entered on a long position with stock INDY on 4/25/17.
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