Last Post ,couple of weeks ago ,ended as follows -
"The Short term trend is Up but may fizzle out in the target zone mentioned. Trade with Trend following methods unless reversal is signalled and confirmed by price."
The observation in comment section updated -
AAR VEE said...
In wake of bearish political developments ,keep in mind following technicals-
1. Trend in short term is up.
2. The previous Gap level of 5530 is important now. Its a 38% retrace level apprx for a wave 4 in progress (may be even iv-3) as well as apprx 5dema level.Close below 5530 will change the short term trend to sell on rise.
3.As per options data 5500 is a support zone and 5700 now resistance.
4. FII cash and derivatives figures are bullish along with NF open interest.
5. EW wise the move from 4770 now resembles more of W-X-Y pattern where Y starts from 5216 in five waves.Target of Y=W=5795 apprx.
(and higher TF tgt of C=A=5870)
6.Now upmove will commence only above 5600 level and close above it will take to targets 5730,5795 apprx.