In my post on Sat, Sept 5, I presented the possibility of a strong Ascending Triangle pattern on Nifty Futures Daily (EOD) Chart. The pattern developed and gave a Breakout on Sept 7 and prudent traders must have taken notice. After the breakout (BO) it was important to watch for a retest of BO level and then we got it as well on Sept 14. Following is the latest chart of Nifty Futures EOD with details:
Notice the nice rising uptrend line TL1 which also acted as support line for the Ascending Triangle. Even if this pattern fails, I will wait for this TL1 to act as support, most likely where it crosses TL2 at about 4770 (see Down Arrow). The resistance line of Ascending Triangle - TL2 was taken out on Sept 7 and then retested on Sept 14 (see UP Arrow). Now, since then, there is another trendline acting as support - TL3. This TL3 should act as first support if the upward momentum continues.
The Doubts:
I was not very excited on the BO of this pattern as volume was not higher that could confirm it. However, if price is running on its own then we can not keep arguing against the trend.
I am sure you dear readers must have taken advantage of this pattern. Don't forget, if this pattern runs its course then the target is 5500 - 5600.
Happy Trading...
No comments:
Post a Comment