Looks like nifty is not yet ready to quit! Tenken has moved to 5699. Yesterday, nifty bounced back from daily kijun, which means there is a strong support there.
So we now have to concentrate on the weekly ichimoku step (5754). If nifty closes above the step, we must exit. With only one day next week for Diwali, 5900 becomes a near possibility if the step is broken.
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So long as the step holds, we stay short.
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Sorry for being away! I was busy reviving my old thread (Check my signature)! Also, nifty was going down as per TA. So I felt it better to wait, till the TA gives a reverse indicator before posting something.
Gap Filling:
In 30-min chart, there was a gap up opening between 5648 and 5685 in the first week of November. I was waiting for the gap to get filled before I could give any view on nifty. But nifty made a low of 5665.75. So I assume today or on Thursday it could make a low of 5650 before deciding the next trend, down or up (Global factors to support)!
315 Trend Change
In Daily, at the moment, it is at the threshold of 315 strategy. 3ema is near 15 ema and on verge of a crossover below 15 ema indicating bearish trend. If this happens, the first target is 5600, which is the previous low in daily, and indicates a short term double bottom. Looking at RSI, it seems that this support will hold.
Ichimoku Daily
Also as per ichimoku, the top of cloud is 5622.
Rule of ichimoku is if the price enters the cloud, there is high probability of the price touching the cloud bottom, 5487. So if nifty is to bounce back, it has to from somewhere near 5622. Another indicator in ichimoku is chikou span. This has crossed below the price action indicating bearishness.
Ichimoku Weekly
Tenken sen and 15 ema now stands at 5573. Kijun is still flat indicating that the price has to touch tenken. Last time tenken was touched was on 3rd September 2012. Also weekly RSI is still overbought.
Support
However, if a support line was to be drawn from all the previous bottoms in
daily, then nifty could touch 5574. This should be a very strong support. This also coincides with the support line drawn from the previous two bottoms in
weekly.
I tried reading the above details and figure out what to expect. And what I got is
. So just keep the levels in hand and whenever nifty touches any one of the levels, check the charts and decide when to go long.:thumb: