Watch the weekly resistances in the Pivot table and book partially closer to the target.
Nifty has cleared the prev. highest close and will meet with stiff resistances in 4770 - 4820 zone.
Despite "OB" readings, Nifty continues its uptrend with larger trend(UP) intact.
3 comments:
With very low volumes and the fact that Nifty is approaching the 61.8% retracement (4788) of the entire fall, do you see Nifty still headed higher?
GK
Hi..GK,
Ours is not to justify Nifty's moves..It is trending up in weekly, daily but "OB" in hourly. And the larger time cycle always prevails over the shorter ones. besides, large cap stocks are coming out of their 2 month long consolidation like SBI, ONGC. Reliance , when moves above 2035, will also be breaking out.
There is a rising trendline in the daily chart and that should be respected.
One could book partial profits around 4800-4825(weekly 2nd resistance)which is also closer to the 61.8% retracement. No topping formation was visible so far. Why preempt..?
We have seen so many -ve divergences on Nifty's way up but none of them made any significant damage to its uptrend as the larger day, week's trend always prevails. So let us wait for that daily trend topping out..Until then, just play along..
Best regards.
ilango
thanks,
regards,
GK
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