Nifty - Testing lower gap resistance | 11,472 - 11,530
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Nifty is currently showing two patterns which suggest that it may go upwards
1. Subsequent retest of the lower point of 11-472 gap region
In the previous trading session, Nifty retested 11,472 around 4 times which would have made the resistance weaker.
If Nifty breaks above the point 11,472 then the next resistance would come from 11,500 round number followed by the top of the gap zone - 11,530.
2. Spending time below resistance
Another observation is that Nifty is trading constantly below a resistance zone rather than straight away getting rejected from there.
(The theory is that the more time security spends below resistance, the more chances of breaking that resistance and vice versa - Obviously, there are no guarantees though)
If Nifty starts to fall, then we should expect support near previous swings.
A break and close below 11,200 would be bearish as that would suggest the formation of lower lows.
Key levels:
(11,472 - 11,530) - Gap zone
11, 200 - Previous swing low
Please note: These are my views and not trading advice. Please consult your financial adviser before making any trading decision.
“You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody.” - Alexander Elder
Before you start reading kindly hit that like button. It motivates me to keep doing such work for free.
Thanks
Nifty is currently showing two patterns which suggest that it may go upwards
1. Subsequent retest of the lower point of 11-472 gap region
In the previous trading session, Nifty retested 11,472 around 4 times which would have made the resistance weaker.
If Nifty breaks above the point 11,472 then the next resistance would come from 11,500 round number followed by the top of the gap zone - 11,530.
2. Spending time below resistance
Another observation is that Nifty is trading constantly below a resistance zone rather than straight away getting rejected from there.
(The theory is that the more time security spends below resistance, the more chances of breaking that resistance and vice versa - Obviously, there are no guarantees though)
If Nifty starts to fall, then we should expect support near previous swings.
A break and close below 11,200 would be bearish as that would suggest the formation of lower lows.
Key levels:
(11,472 - 11,530) - Gap zone
11, 200 - Previous swing low
Please note: These are my views and not trading advice. Please consult your financial adviser before making any trading decision.
“You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody.” - Alexander Elder