30 min Nifty chart
Nifty made a good move today with a zoom bar cutting through the magenta UMLine.The resistance expected at 5440 levels was negated and price move above 50 sma firmly was a positive note.Most of the day the price was in a range at 5460-5475 levels and EOD closed higher at 5481.
Resistances above are at downtrendline from prev highs close at 5490 levels( 76.4% R level).As Stoch is at overbought level , expect a pullback when it meets the range of 5490-5535.
The Median line target for the up move is at prev Swing high of 5535.
The price move after testing the Yellow Lower median line has moved positively for the past two days.The low at 5350 levels can be assumed as the Pivot 4 of this set of swings.Major moves occur after 3,5,7 pivots and in this scenario the move after 3rd pivot was a zig zag and corrective waves and marking the end as 4th pivot .
Now what to expect?
Scenario 1 for Long trades:The price if it breaks out of the current channel on the upside , the upper level targets are 5681-5721 range.This corresponds to 50 % R of previous major swing and the confluence of Median line and schiff median lines of previous two swings.
Scenario 2:The price move continues to be range bound within the channel and drops below 5345 , which will be a major fall towards new lows.