Wednesday, October 21, 2015

NIFTY TECHNICAL REVIEW



Nifty daily chart witnessed tweezer pattern, wherein prices held twice at the exact same level, it essentially indicates very short-term double top wherein bulls were unable to drive prices higher.

However, High formed by the two candles should hold therefore it is important to carefully watch the price action that occurs immediately after this tweezers Pattern.

Near-term Resistance is at 8294 levels.
Near -term Support is at 8225-8200 levels.

Let's move to the weekly chart:




Nifty is trading in a downsloping channel.

The Lower Top Lower Bottom formation is intact as yet.

Last week candle is Dragon fly candlestick pattern which is formed near 8250 resistance level, adding a caution for the existing longs.

The Further Weekly Resistance is at 8327-30 levels.



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