Finally, the Breakout Happens !
- The last abbreviated post was titled " Indices Again in the Positive Momentum Territory ! " due to a new buy signal obtained from the Momentum Signal trading system on Thursday.
- However, it was not known whether the buy signal may lead to a breakout or not due to the primarily sideways kind of trading being seen in the past few weeks.
- Friday's market action has now confirmed the breakout. The market has been showing some other subtle indications also pointing towards a breakout to the upper resistances.
- The first of these indications was the reversal from the support at 5350. The second was a a subtle gap which occurred on Thursday. ( Subtle gap - Nifty futures never traded at the Wednesday's last traded price and the high on Thursday thereby leaving small gaps. ) The third and most important one was the close of Nifty futures above the the 50 day moving average after a long period of two and a half months.
- Therefore, all these technical signals have lead to new FII buying on Friday and this has helped the market to surpass the higher resistances between 5600 and 5650 levels very easily.
Nifty Futures - Intra-day Chart
Nifty Futures - Daily Chart
