As all major stock markets turned very bullish over the passing week, the NIFTY50 was one of the stronger markets, and it turned with a break-away gap.
In the previous review, we mentioned testing the 7678.35 level as part of a daily bearish setup (with the more interesting part of a big move had the market taken out that level). Well, the market didn’t get any closer than 7715.8 before turning up rapidly, making this level as the test (from above) of the down trendline.
It was a good example for how the market might be looking very good and ready to do something, and you might get two or even more indications -all point to the same certain direction, but yet, always wait for the market to make the signal necessary rather than assuming that it is going to do it, and then and only then, – find the best way to join the move, either with the signal itself or by waiting for a pullback in cases where consolidations are more likely to emerge.
Since the last Weekly swing high at 7992 had been taken, we got into a bullish setup targeted at 8302 with a remarkable Weekly bar that after making a false thrust down, ran up to the upper Bollinger Band, closing with a penetration inside the upper band, looks very strong.
Currently we are closed to an area of resistance. 8195.65, 8236.65 and 8269.15 are clear resistance levels for a Weekly swing and below.
Looking higher, the next test of the market is the High of October 2015 at 8336.3 level. Taking out this level within the current Weekly momentum is an important sign of strength. However, pay attention that the current bullish setup target points lower (8302) than this High.
Disclaimer: Anyone who takes action by this article does it at his own risk, and the writer won’t have any liability for any damages caused by this action.