Nifty has been consolidating in a triangle pattern, which is a continuation pattern. It will be sideways by the time it is inside the pattern; if it comes out of it, there is more chance that it will break upside. Once it breaks to the upside, make the entry; once it gives a little retracement, it can give a really nice bull target.
Reasons:
Verdict:
Chances are to get bullish-breakout.
Plan of action:
Keep a neutral position inside the triangle pattern. If it breaks, adjust the position according to it.
Reasons:
- Ascending Triangle consolidation is about to break. (Bullish)
- Downside trendline support, 200 EMA support, and minor flat zone support. Multiple support points can provide nice support. (Bullish)
- PCR = 0.86 ( Mild Bullish)
- Max Pain = 19800
- RSI 40-60, which is moslty sideways. for bullish let it go above 60, and for bearish let it go below 40.
- The upside is only a single resistance zone, which is highly volatile and has touched multiple times; if it breaks this time, there is a greater chance that it will continue the bullish momentum.
Verdict:
Chances are to get bullish-breakout.
Plan of action:
Keep a neutral position inside the triangle pattern. If it breaks, adjust the position according to it.
