Nifty displayed "triangle's characteristic" of a powerful price action.

Nifty Pre-Market View.

"B" waves have been known to be treacherous in nature, oftentimes.
We could identify this corrective setting in on 02nd July, followed it for 7 trading days and
suggested ways to deal with it,
its choppy characteristic of moving back & forth between HEma & LEma,
its craziness to give new signals frequently
while prices are kept within the price range of the first fall ( "a" wave).
And we identified the "end of "e" wave of the triangle yesterday.
For an objective trader, following this triangle would have been easy.
For an emotional trader, it is roller coaster ride and would have reduced his capital too.
For a sensible trader who does not know the "abcde" of a triangle, it is either
"Trade the extreme points" or stay out till it resolves to move out of the contracting range...
This is pure study and pure following and such studies repeat often in various patterns.
If you can maintain your balance, holding the larger picture while dealing with micro choppiness, your sailing would get a lot smoother & richer too.
Triangle target calculations: Height of triangle:5904-5760=144.
Breakout point + Height of triangle: 5870+144=6014.
Breakout point is debatable.
Knowing the target should not stop you from monitoring the progress of the prices and technical developments along the way.
Minor resistances are 50dsma @ 5915, previous low @ 5937.
Major resistance is @ 5970.

Nifty breaks out of the ascending triangle.

Ascending Triangle (as a Continuation pattern)

Definition of 'Ascending Triangle'

A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs. Traders enter into long positions when the price of the asset breaks above the top resistance. The chart below is an example of an ascending triangle:

Read more: http://www.investopedia.com/terms/a/ascendingtriangle.asp#ixzz1zAzPWA2a

Nifty may be developing an ascending triangle as BN did.

Nifty traded well within the planned trading range for the day. If it is a counter rally for the fall, it should limit itself within 6050-6070. Nifty just managed to keep its head above 5-sma. If follow up action fails, it may move back to 5960 again.

I will update in details in PreMarket View.

An ascending triangle has a definitive bullish bias before the actual breakout. On the ascending triangle, the horizontal line represents overhead supply that prevents the Index from moving past a certain level. It is as if a large sell order has been placed at this level and it takes time, thus preventing the price from rising further. Even though the price cannot rise past this level, the reaction lows continue to rise. It is these higher lows that indicate increased buying pressure and give the ascending triangle its bullish bias.