Nifty50 resistance line
Since 2004 Nifty50 Index has been in a Uptrend Channel and been testing Supportline and Resistance line many times since 2004.
But since August 2017, the price has been testing Resistance line 3 times. The price has been rejected all 3 times and that might give a bearish signal. Why ? Because the Resistance line becomes more and more reliable for each time it is testet.
But But But… On the Daily Cart (The small chart) I see a double bottom, which normally indicate a bullish signal.
When a Double bottom and neckline has been formed correctly we often see the price raise.
What I will do is wait and see if the Resistance line will be crossed (create a Breakout). then I will go Long or the price start to fall within the next weeks then I will go Short with Stoploss just abowe the Resistance line.
So right now, I will sit on my hands and wait.
If Nifty50 resistance line is strong, then we might see Nifty50 fall back to area 9000 where Support is strong and later to 8000 where Support is strong (in case area 9000 was broken)
As Nifty50 Index reached All Time High a few days ago, I would take profit now and wait, so I have capital to go short in case the Resistance line holds – it is always difficult to sell when the market is bearish.
Since 2009 the price has been down testing Support line 6-7 times. If the price goes down now and hit the Supportline again then Nifty50 might fall 15-20% within the next year or two, so be careful please.
Good luck my friends and remember : Better be safe than sorry.