Some positive vibes after volatile week?
Nifty has been quite volatile last week with opening lower on Monday and then recovering almost 1000 points from the low by Friday end! During the this process of 1000 points difference between the Low and High, it has Engulfed previous weeks candle making a “Bullish Engulfing” pattern on weekly time frame with heavy volumes on . But interestingly, confirmation is received only if next candle is green and high is above last candle. So traders need to wait for this week to get reversal confirmation.
Looking at another instance of a downside channel on Nifty , we are about to breakout on the upside if we break above 16760 in coming week. That breakout would mean a lot to technical traders because it would change the trend of last 9 weeks of to some strong upside momentum.
To sum up, if we breakout above 16760 than a traders should go long for the immediate target of 17256 which is a cluster of 7 and 14 weeks average while stop loss on downside is way down at 15925. Next targets would be calculated once we breakout above 16850 so stay tuned on long side until then!