The index appears well-positioned to extend its rally - Tradebulls Securities Pvt Ltd
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Nifty
After the robust rebound early this week the index witnessed consolidation above its 20 DEMA support of 24055. This current recovery coincides with the formation of a bullish reversal candlestick pattern on the weekly chart, hinting at a potential shift in trend. Currently, the index appears well-positioned to extend its rally. A sustained move above the 50 DEMA resistance zone near 24,410 could trigger a decisive breakout, opening the path to the pattern target zone of 24,940, with a minor resistance anticipated around 24,570. The daily RSI, trending above 51, coupled with the presence of a gap support, reinforces the case for a trend reversal momentum to extend further during the week. Hence traders should consider building aggressive long positions as the index approaches key breakout levels. While investors to maintain a weekly closing stop-loss at 23,240 for existing long positions. We anticipate a continuation of the short squeeze rally, supported by fresh long additions, which could drive the upward momentum further into the week.
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