Mentorship InstaView 05 Aug’21: Time to Slow Down


Nifty View: Optimism continues as the benchmark Nifty extends the recent breakout with another positive session in today’s trade. So far this week, the index has gained over 520 points or 3.3%. And not only has it broken out to a new life-high, but it has also managed to do that with ease and held well without slipping down. Now at today’s close, a look at the intra-day charts do suggest some price-momentum divergence. Do not misunderstand these divergences as a sign of trend reversal. These reversals can also lead to price consolidation. Short term level to watch for is the range of (16,150-16,200), wherein we have a rising gap. Expect the underlying trend and momentum to continue and so short term traders should look to buy on dips.

Thank you for following my work and please feel free to share your thoughts and suggestions.      
 
Trade Well. Trade Wise.