Tech View: Nifty Forms Long Bull Candle on Daily Chart

Tech View: Nifty Forms Long Bull Candle on Daily Chart

Keywords: Nifty, Bullish, Technical Analysis, Trading

The Nifty 50 index formed a long bullish candle on the daily chart on Friday, signaling a potential trend reversal. The index closed above its 200-day exponential moving average (EMA), which is a key technical indicator.

Bullish Signal:

The formation of a long bull candle, coupled with the close above the 200-day EMA, suggests a bullish momentum in the market. This indicates that the market is likely to continue its upward trend in the coming week.

Trading Strategy for Next Week:

Based on the technical analysis, traders can consider the following trading strategies for the upcoming week:

Buy on Dips: Traders can look to buy the Nifty on dips towards the 17,700-17,650 levels. Stop-loss can be placed below the low of the candle formed on Friday.
Target: The first target for the bullish trade is the recent swing high of 18,000. If the index breaks above this level, it can move towards 18,200.
Sell on Strength: If the Nifty fails to sustain the bullish momentum and breaks below the 17,700 level, traders can consider selling the index. Stop-loss can be placed above the swing high formed on Friday.
Caution: Traders should be cautious while trading during the week as the market is still susceptible to volatility.

Disclaimer:

Trading in the stock market involves risk. The information provided in this article is for educational purposes only and should not be construed as financial advice. Traders should always conduct their own research and consult with a financial advisor before making any investment decisions.