SHORT TERM VIEW --- FOLLOW THE CHARTS NEWS WILL FOLLOW

On 7'th Sept in this post FOLLOW UP SHORT TERM AND LONG TERM VIEW under short term view we mentioned that --- " Now the short term trend also turned up, so short term trader can buy any dips ". As per our analysis NIFTY continued it's upward journey and today opened up almost by 2% due to global cues from American markets. So it has proved once again that FOLLOW THE CHARTS AND NEWS WILL FOLLOW.

Since our post on 7'th Sept NIFTY is all ready up by 230 points ( i.e. approximately 4.3% up ) so short term traders can book profit here or wait for the next target. What is the next target ? To answer this question we have to analyze the charts.

NIFTY HOURLY CHART

 The above chart is showing ROUNDING BOTTOM or CUP N HANDLE PATTERN on hourly time frame. Today NIFTY gave breakout from this pattern. Target for this pattern will be height of pattern ( AB = which is roughly 225 points ). So target will be 5445 + 225 = 5670.
        So any pullbacks upto 5425 - 5450 range will be bought for above mentioned target with stop loss of hourly close below 5421.95.

At the same time long term charts ( daily n weekly ) are showing resistance in the range of 5600-5630, so be cautious and follow stop losses strictly.