Applying price point analysis to capture massive gains in NIFTY consistently

NIFTY FUTURE- Review of 19th Mar

NIFTY FUT – we couldn’t had got more correct than this. Yesterday we had clearly discussed since the daily candle was a small range the trading decision is much easier to take a break down or a break out trade outside the trading range.
At the same time we had mentioned 5825 as the TREND DECIDER of the day and 5800 levels as the BULLS LAST STAND point. Look at the market reaction once 5820 and then 5800 was cracked, all our downside targets were done in a single hourly candles. We had  mentioned a downside target of 5760 and 5735.
Look at the charts , NIFTY low made exactly there at 5736.
Again dear friends this is not a rocket science but simple price point analysis considering multiple trading swings and range in view.
An additional confirmation was received with our momentum indicators, readers will recall that both the short term and long mid term momentum indicators turned negative yesterday giving enough proof that markets are trading weak.
Today we took a short just as per our blog below 5830 levels and captured massive gains all the way to make it a terrific day. Banknifty was another stellar performer giving nearly 300 points in gains in a single session.

NIFTY FUT wise 5800 was  a critical swing support level that got breached and now puts the entire retracement upmove to be questioned.
How are the markets expected to perform in the coming sessions, what are the critical support levels to watch out in this zone. Read our detailed analysis for the next session

NIFTY FUTURE –20^th  Mar  Trading Guide

NIFTY FUT closed below the critical swing support zones of 5800 and tested another support zones in the downmove, how is it poised now.
Readers will recall we presented a very visual trading system called as the Guppy charts, made famous by famous investor trader daryl guppy few sessions back, it will be now wise to review the charts all over again and see how the markets are placed.

NIFTY FUT Swing Charts-19th March

As is evident from the charts that we the long term averages went negative once we cracked 5880 levels and now at the same time we see a significant divergence of the long term and the short term EMA.

We also have a retracement placed at 5750 zones. This is exactly where markets closed today.

So how do we use these data points and plan our trades for the next session. Well based on the price point analysis we see that NIFTY FUT wise 5750 zone will form as the immediate trend decider of the next day. Trading above which and keeping  the divergence in mind NIFTY FUT will try to retrace back to 5790-5800 zones where it is expected to face resistance.
On the downside NIFTY FUT will face some supply till 5735 and will become significantly weak if that trading range is broken. Below 5735 NIFTY FUT can drift down to  5705 levels and below that to previous lows made at 5670 odd trading levels.

Swing indicator wise the short term momentum indicator are  trading negative and will continue to hold so until it trades below 5800 levels. The mid term momentum indicator are also negative now and will hold so until NIFTY FUT trades below 5860 levels

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5795-5800  sustaining above which it will target 5820,5860
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5705,5765