As expected, Nifty pulled back today. But, it could not cross the resistance. So, it's dancing between support created by previous breakout and resistance created by previous support. That's a strong support. But the weak resistance held on to its own. And the bearish engulfing candle from yesterday says bearish chart.
Take trade only when the direction is clear and risk reward ratio is favourable.
Take trade only when the direction is clear and risk reward ratio is favourable.
Comment:
The bounce back continues. This bounce back came after a breakout and the breakout level has been maintained. So, this means that Bearish downtrend has been broken. But, the pullback could be a small 1st bounce of W pattern. The bottom level of second bounce gives the confirmation of bullish trend. That's where good risk and reward returns lie.
