Nifty Update

Nifty 60 mins

Nifty Daily

Nifty Weekly

Crucial Moment in NIFTY.

Observe all three charts posted above. 

A close look at the 60 mins chart tells us that with break of the trend line and divergence in RSI, can very likely give us an up move. With the index currently in an accumulation mode, the up move can take Nifty testing it's resistance ( support in the previous post) at 5675-80 as its first level. Currently, index stands at  5640.

The daily chart, also shows divergence starting to form in RSI. Along with this divergence, the last trading session on the price charts shows a gap down opening which could not be sustained. Co-relating the 60 mins and daily charts, if Nifty goes up tomorrow, and closes with a strong bull move for the day, we can witness a morning star, which will validate the RSI divergence on daily charts.  

The current level of Nifty, is also the lower level of the on going downward channel on the Weekly charts. (see weekly chart.). 

Combining all three charts an upmove now on can take Nifty at 5675-80, as it's first target. This level is also the 61.8% retracement which we have been following on weekly charts. A break above this level, will take Nifty to another leg up at 5720 as it's next level and the next resistance on 60 mins chart.

However, the longer bias is still on the negative side, till we see a valid breakout of the downward weekly channel.