Nifty for 6th October 2023 - Weekly ClosingAs Expected ( Please refer to the linked post) Nifty opens with an up gap at 19521, which is near immediate resistance i.e. 19544-19550.
Since it was a gap-up opening of approximately 100 points and near resistance, creating new long positions immediately makes no sense.
Why was I expecting a Gap-up opening today?
1. Prices bounced twice from the support area during the day.
2. Prices closed well ( in spite of weakness during the day)
3. RSI was at support ( 40 levels)
4. Hammer-like candle formed at support
Today's Price Action
1. Opened Gap up
2. Prices Halted at resistance during the first hour.
3. No sell-off from resistance.
4. Prices consolidated around the resistance area( 19544-19550)
5. Higher High, higher low, gap up indecisive candle.
Expectation for Tomorrow - Friday, 6th October 2023
1. Prices might open with an up gap tomorrow, how far don't know.
2. Immediate Resistance @ 19638
3. Prices should sustain the 19543 level for a move towards 19638 levels.
4. Expecting 80-100 points move tomorrow.
Why am I Expecting a Gap up tomorrow
1. No sell-off after a gap-up opening near resistance
2. Prices consolidated well on the hourly and 15-minute chart
