Nifty Trend Channel Analysis
8 Feb 2021 ● 01:03 PM
How you draw a trendline determines the channel and respective support and resistance. But as markets progress, we have to change the lines we draw to fit our own latest perspective. Markets are near an important resistance zone but if we put out multiple channel lines we can get a different perspective. So here I have used three parallel lines to the one from the bottom of March 2020. This trendline was broken only for one day, the day prior to Budget 2021, after that, we bounced back. So I consider it a false break, and the trendline remains valid. Next, move it to the next resistance level in June where prices faced resistance and have done so multiple times in the last quarter. This trendline is now at 15360 as the immediate resistance. These are rising trendlines so the level changes every day. Now, what happens next? Watch if we can get the strength to breakout above 15360, that would change the scenario significantly. I am not committed to calling a top near this resistance like many are. I am excited about the idea that we breakout above it into the larger channel above. Then this resistance channel becomes new support and the top end goes up by another few 1000 points. Let us see what happens. These are, as of now, the levels.