Nifty - Finally an abnormal break with Gap-up action.. - Wallfort Financial Services

NIFTY had constantly been getting resisted at 138.2% Fibonacci Extension mark placed at 5950/60. On weekly cards three consecutive weekly DOJIs were formed indicating indecisive action near the mentioned mark. But this week's action has formed a breakout action but with gap up which may be termed as an abnormal breakout. To reach either 150-161.8% extension marks, index must sustain above this breakout point or gap which it made to break the range.

Also, since Nifty has made a bottom near 4770, Nifty has been moving up in a channel form, which, at this stage, shows a support near 5750 levels. Now, next resistances for the nifty are seen near 6030/40 and near 6145/65 levels, which can also be termed as extended targets for the nifty.

Similarly, 5950, 5835/40 & 5750 to play a crucial supportive role for index hereafter and should be treated as crucial from current trend's point of view. Any breakdown below these would mean that Nifty is going for short term trend change or becoming bearish on the cards.

Source : Equity Bulls

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