Nifty presently is testing a stiff resistance zone. This resistance zone has acted as supply zone for the last 5 times and this is the sixth time it is testing it.
The first time it entered this zone on Oct 2007, kept consolidating and finally failed on Jan 2008 Second time in Jan 2018 - touched and got rejected Third time tried again on late Aug 2018 and failed on Sept 2018 Fourth time again on May 2019 and failed in July 2019 Last time it again entered this zone on Dec 2019 and finally failed on Jan 2020 [the massive fall - attributing to pandemic]
Interestingly - again it entered the same zone. Will it fail again ? or will it give a multi-year resistance zone breakout
What's different this time
Look at the strong bullish candles of the last 2 weeks. Shows a very heavy positive momentum
BNF still has unfinished business to touch its all-time highs
Global cues remain positive - the hope of vaccine, US elections
scenario A - if NIFTY opens GAP UP on Monday and sustains above the resistance zone for a week, we may see rally like never before
I would go Long with resistance as SL and target open.
scenario B - if NIFTY shows sign of weakness, I would wait till it re-test the resistance zone before falling
Happy Trading MSK
Заметка
A crucial day for Market tomorrow, if today's low is not taken out, we may see a 100-150 pts rally. I will play with this setup, rest we all know Market is supreme
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