Nifty : False Channel Breakout or Early Breakout ??

NSE:NIFTY   Nifty 50 Index
Let's start with Britain's referendum polls. No one is sure what will be poll results, Its Neck to neck between BRemain & Brexit. What Nifty             will do inline with poll results ?

If Bremain happens - Nifty             Gap Up ; If Brexit - Nifty             Gap Down.
Rare case : There is possibility of Nifty             ignoring the result as India has some vested interest in both scenarios

Coming back to charts, we have channeling and price ranging for past few days between 8000 to 8300.
Today the upper trendline broke and we have solid close above trendline . This can be false breakout or early breakout for bullish run, cant say with much confirmation as the channel is still in formation.

If Upper Breakout is valid, then Nifty             will try to fill previous gap @8350's but if markets are in full bullish momentum & didnt face any resistance around 8350's , it will straight away go for 8500's - small pullback -then 8600's.

On Downside Nifty             has very strong support @8000's,but some valid fundamental thing needs to happen to break this level sooner or later to retest 7500-7700's. After that markets will touch 9000 mark. If 9000 happens straightaway that it will be fragile.

Dont miss to note the double top @8295, which means market can move lower if Double top works.Both these scenario's gets complex with Brexit poll news. So wait till results then look at charts to make a decision.

Please Hit Likes which encourages to post more Idea's...

Happy Trading !

Comment: Tracking Brexit Poll results, Global Markets down heavily (Forex,Crude,Indexes) - Still poll is Neck to Neck , even @ halfway mark
Comment: SGX Nifty down by -2.3%, so expecting Gap Down of 150pts or More
Comment: Don't get caught in Bullish Trap... Nifty will retest 8050's-8100's before Bear's resume their Game
Comment: Have you guys noticed an odd thing about Nifty ? Friday after Brexit results all the markets went down crazily morethan 4% & some markets(Index) even down-to 7% but surprisingly Nifty closed with just -2.2% down.

That confirms only one thing, We are Fundamentally Strong or One-eyed Kind in land of Blinds, either way our economy is positioned well in Global Outlook. India will become new Investment destination for the world, bcos all other economies are really struggling & Our Economy is quite good. Atleast thats what it looks like :)
Well India can be a Investment Destination after it hits 7500 because I want it to go till there.. I want to make some money on the way down
+1 Reply
InsiderB jackson_philips
Yes I do agree, Am also expecting same but what I meant is Macro-view, a year or more it will take.
Hi, can you follow me on twitter @fxbud. thanks.
Where do you see nifty bottoming now ?
I see, it could be 7733 or 7560, let see how market react in next week.
+1 Reply
InsiderB Imprimus
Same as you said...Around 7700's / 7500's( shorterm) and Ranging (directionless move) afterwards until another news strikes to determine Nifty's direction
+1 Reply
Show is on.
+1 Reply
Yes Ambrish, Grab Breakfast n Enjoy the Show :)
Thanks for warning.
+1 Reply
You're welcome !
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