Nifty Future chart July Series :
Perspective : The excessive bearishness which we saw when the market broke 5300 levels, still seem to be prevalent in the mind sets of traders despite a 500 point move from the lows.It is important to trade the market, not your view of the market.The McClellan is still at a comfortable 43 which would mean that upside possibilities remain.
Back Ground : We spoke about 5608 as resistance in our previous post.Old resistance became support yesterday.Yesterday the market scaled prime resistance 3 ( PR3) in June futures at 5650.
Chart Speak :
1) A failed auction (FA)at 5620.
2) The proper trade set-up would be to play the FA move out of the FA point of 5620 which gives a minimum of 70 points in one direction before waiting for a rebound move.
3) Target for the move will be 5698 and 5720 which is prime resistance 3 ( PR3) for today.
4) an auction above 5653 will keep the buyers in control all day.
5) Breakdown point for the day is 5586.
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