Today's range was 141 point. one of the highest since 17-Aug when range was 204 point. At that time, the crash of 200 pts was bought back in next two days and then we came up till 5200 from 4350 level.
Are things different this time ? My view is as good as anybody else's view. But chart is telling for sure that we are already running below 20 dma, below Trendline and we have just touched 50 dma today at 4830 and found support there. We also had 7 consecutive Red days.. Maybe its time to take breath now. We might see narrow days, which is also likely as expiry is just around the corner. Looking at OI picture, 4900- 5000 still looks like the range for expiry. Lets see.
We had NR7 on 16-oct, which got broken on upside next day i.e 20-oct but market came back to the range of 16-Oct. That is the potential sign of failed breakout.
It made another Inside day, and NR7 on 21st with range of 61 points (indicating it is still making its mind). and broke the lower edge of this range on 22-Oct . Since then we are only seeing more and more strength on red bars. They are getting bigger in size. Price has not visited the narrow trading range since it left that zone. These are the signs that indicates successful breakout.
Hope this helps you in identifying false v/s successful breakouts.
Trade what u see.
Happy Trading.
