RETEST OF 6650 BOTTOM LIKELY BELOW 6773
THE WEEK GONE BY
In last week's report we had reiterated the importance of 6650 support and had added that 6819, the top made in the previous week, was the immediate resistance, above which 6900 would be the next target where the upward sloping trendline adjoining recent tops on the daily chart is placed.
Nifty resumed its upward journey and touched a high of 6870, but slipped sharply from there to end the week at 6783, gaining just 4 points compared to previous week's close.
6773, the low made on Friday, is the immediate support on the way down, a sustained trading below which can take Nifty back to the 6650 bottom. A breach of 6650, as we have been mentioning, would break the higher-top higher-bottom formation on the daily chart and would open up the space for the larger retracement of the entire 5933-6819 upmove.
On the way up, the upward sloping trendline adjoining recent tops on the daily chart presents a resistance around 6930. This would be the immediate target on the way up.
Traders are advised to lighten long positions if Nifty stays sustains below 6773.