Nifty consolidates after a huge up move & stays bullish but cautious at higher levels.
In our yesterday's post "Poised for a breakout", we had mentioned that the Bulls need to do more to keep the Bears at bay. The Bulls did a smart job by maintaining the Nifty well above the support zone around 6280 for the entire trading session. The Nifty opened with a 20 point positive gap up at 6341 and made a quick high of 6347 and then consolidated for the entire trading session, making a low of 6300 before closing at 6319 with a nett loss of just 1 point. None of our trading plans got triggered and we took to the sidelines for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +99 Bear Power reduces from +29 to +52 indicating that the Bulls are gaining power whereas the Bears are slipping gradually. For today, the Bulls need to surpass the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 in order to regain their lost grounds.
2) The stochastics are almost touching the overbought zone.
3) The Nifty continues to close above all its key EMAs as well as above all its key DMAs.
In our yesterday's post "Poised for a breakout", we had mentioned that the Bulls need to do more to keep the Bears at bay. The Bulls did a smart job by maintaining the Nifty well above the support zone around 6280 for the entire trading session. The Nifty opened with a 20 point positive gap up at 6341 and made a quick high of 6347 and then consolidated for the entire trading session, making a low of 6300 before closing at 6319 with a nett loss of just 1 point. None of our trading plans got triggered and we took to the sidelines for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +99 Bear Power reduces from +29 to +52 indicating that the Bulls are gaining power whereas the Bears are slipping gradually. For today, the Bulls need to surpass the levels of 6360 to maintain their upwards momentum whereas the Bears need to breach the levels of 6260 in order to regain their lost grounds.
2) The stochastics are almost touching the overbought zone.
3) The Nifty continues to close above all its key EMAs as well as above all its key DMAs.