Nifty 50 saw a smarty rebound from its 200-day moving average as the index moved towards its 5 DEMA resistance zone around 19150 - Tradebulls Securities Ltd
Nifty
50 saw a smarty rebound from its 200-day moving average as the index moved towards its 5 DEMA resistance zone around 19150. Yet there is no clear not exhibit of any reversal pattern traits that would indicate a clear bottom. We are unable to declare the current corrective move to be over because both of its trend strength indicators have been diverging, with the RSI at 39 and the ADX continue to rise higher at 38. Given that the current decline from 19850 has occurred more quickly than in previous waves, it is best to trade cautiously & address one day at a time in the short term. When the oversold condition is met but the reversal is not complete, it is best to take a passive approach and only look at mean reversion trades that fall into the wide predicted range of 18600-19300 with 18850 being its mid-point. On immediate basis expect the index to oscillate within the 19300-18850 range with a positive bias
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