Wednesday 26 May 2021

NIFTY 26 MAY 2021 : Tussle to continue between bulls and bear near all time high

 


I can tell you that most momentum indicators would be running with divergence in shorter time frame and this can be impact of some gap trade. This is the characteristic of trade near all time high. two factors govern the trade - one is momentum (on hope of stimulus package) and divergence (may be due to unwillingness of participation of fresh bulls). 

Technical factors - Watch the formation of rising wedge on daily chart. This is concerning for bulls. No one can guarantee but it looks like that if it Nifty slips below 15100 by any chance and starts settling below 15100 then it may not be safe anymore. In alter sense 15100 is a decisive support and must be respected. 

One higher side, break above the given trend line can make us safer but that levels looks above 15325. 

I hope above study will help you to take trading decision. 

Happy Trading ☺