The road ahead does not appear lush green
With the NIFTY 50 hitting an all-time high of 12,311.20 one tends to become overly optimistic about the near future. However, the charts do not share the optimism that is expressed by news headlines or financial gossips. A Doji has been formed at a level that can be confidently said to be the resistance zone.
If a gap down opening occurs on Monday we might even be seeing the formation of an evening star or abandoned baby which will be formed at pivot high. Additionally, one can see the bearish divergence that has been formed on the RSI (14 days) and MACD line and also a bearish crossover was confirmed a few days ago.
However, if NIFTY 50 opens gap up and sustain at levels above 12,300 then the following view shall be invalidated.
Disclaimer: We have provided this information to traders and investors for educational purposes only. It is neither a legal interpretation nor a statement of SEBI policy. Before making any investment or trading decision it is advised to consult with your financial advisor.
Happy trading! Satyarth Grover.