Markets ended flat on friday. Still market in bull region that is above 6000. Nifty is forming Rising Wedge pattern, that you can see the chart below.Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows.So trend reversal may happen above 6100. So investors must be cautious. If we consider 6 month chart for Fibonacci Retracement from High of 6202 to low of 5492, we can observe Nifty has retraced 78.6% of the move; precise 78.6% comes at 6050, and so far Nifty made a high of 6066.85 so we were above the 78.6% re tracement. If you consider 3 months chart, it retrace from low of 5573 to 6066.85 i.e 34 points behind to retrace 100%. RSI is in 58.66 but it gives the indication of weakening by forming a potential Negative Divergence on Daily chart. Nifty has resistance at 6100, it may go above that level but difficult to sustain . Dont take longs below 6050. Nifty has support at 6000, below 6000 may reach 5950, 5925, 5910 are other supports. Watch global trends and Rupee value, and trade cautiously.
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Support and Resistances:
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