Nifty Analysis - May 28, 2019

Here is an analysis of Nifty as per my limited knowledge.

This is NOT an investment advice as I am not a qualified investment advisor. Sharing my views so that I can learn from supporting and opposing views of others.

So please feel free to share your views / counterviews.

1. Nifty completed the Head and Shoulder pattern on May 07, 2019 and as predicted by me at that time, fell to the target of 11250. There after it overshot a bit to 11108, creating a bear trap. Notice how NIFTY bounced from a strong support zone formed by a strong previous resistance zone 10987 - 11120. A strong Demand Zone formed on March 6-7-8 within this band worked beautifully.
2. The neckline of previous H&S pattern was a strong potential resistance area and I bought Nifty futures at 11290 (confirmation entry) with that target.
3. On May 20, Nifty opened gap-up above this resistance line which created a target of 11854, the previous top. As expected, Nifty fell from that resistance line, creating a bull trap, to the support of 11579 and bounced back.
4. The next resistance level is 12045 and I am expecting Nifty to form a horizontal channel between 11855 and 12045, and eventually break out to a target of 12318.
5. I am expecting a bounce from 11855 if Nifty falls to that level. Will be looking for a strong Demand Zone at that level and will watch candlestick signals at that level to do a confirmation entry. As of now I am not seeing a strong DZ at that level, so unless I see a strong candlestick reversal pattern there, I will not go long there, as a fall from there may take Nifty down to 11750. Unlikely to see this big fall in today's Bull sentiment, but there is always a possibility of a correction once the election win euphoria is over and realities of rise in Crude Oil prices given the US-Iran tensions come to fore.

Eager to know your views and counterviews.

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