Nifty might be heading towards a small setback.
Nifty50
Why am I waiting or why am I doubtful?
1. The candle in daily chart made today closely resembles bearish doji.
2. The distance between candles and trendline seems a bit too much.
3. Even the distance between the candles and 20 day EMA is of around 500 and the 20 day EMA is at 14375 levels but the prices closed at 14925 which, according to me is not healthy.
4. The uptrend in 5 days, from 1st Feb is almost 1200 points which makes me expect a correction will about 14400 levels.
Now coming to weekly charting which has some very strong bullish signals.
1. The candle this week is a very strong bullish engulfing pattern but the RSI is crossing 70 on the upper side which also indicates an overbought range.
2. Again there is a support being seen at 14400 levels in the weekly charts as well and the next support levels are lower at 14000 and 13700 respectively.
*Such strong bullish pattern assures that the trend is uptrend but the daily charts do indicate that there is an inflation. So, my entire study tells us to wait for a while and figure right bottom before we go long.
Why am I waiting or why am I doubtful?
1. The candle in daily chart made today closely resembles bearish doji.
2. The distance between candles and trendline seems a bit too much.
3. Even the distance between the candles and 20 day EMA is of around 500 and the 20 day EMA is at 14375 levels but the prices closed at 14925 which, according to me is not healthy.
4. The uptrend in 5 days, from 1st Feb is almost 1200 points which makes me expect a correction will about 14400 levels.
Now coming to weekly charting which has some very strong bullish signals.
1. The candle this week is a very strong bullish engulfing pattern but the RSI is crossing 70 on the upper side which also indicates an overbought range.
2. Again there is a support being seen at 14400 levels in the weekly charts as well and the next support levels are lower at 14000 and 13700 respectively.
*Such strong bullish pattern assures that the trend is uptrend but the daily charts do indicate that there is an inflation. So, my entire study tells us to wait for a while and figure right bottom before we go long.
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