Nifty future breaks out above the down-trend line [ pl see daily chart above ] and other coinciding barriers ( please refer to our yesterday's post ). The indication was clearly there, we argued yesterday, by tracking the breakout on RSI, a leading indicator. It also looks well poised to clock a 5900+ weekly closing tomorrow - something we are consistently arguing for the last few days. Pl refer to the weekly chart posted above. A bullish engulfing pattern is in the making.
Bears started unwinding their position , as evident from last 45 minutes of action . More unwinding to come tomorrow if bulls hold their ground in this 5860-5900 zone.
We are continuously keeping a bullish outlook from 5650-5700 zone and this view will be reinforced in case we get the weekly close we are talking about. Fresh long positions to be added in such a scenario and in all likelihood the recent high in Nifty future ( 6120 ) will be taken out sooner than later.
But before that, wait for the confirmation move tomorrow !
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