Nifty : False Channel Breakout or Early Breakout ??Let's start with Britain's referendum polls. No one is sure what will be poll results, Its Neck to neck between BRemain & Brexit. What Nifty will do inline with poll results ?
If Bremain happens - Nifty Gap Up ; If Brexit - Nifty Gap Down.
Rare case : There is possibility of Nifty ignoring the result as India has some vested interest in both scenarios
Coming back to charts, we have channeling and price ranging for past few days between 8000 to 8300.
Today the upper trendline broke and we have solid close above trendline. This can be false breakout or early breakout for bullish run, cant say with much confirmation as the channel is still in formation.
If Upper Breakout is valid, then Nifty will try to fill previous gap @8350's but if markets are in full bullish momentum & didnt face any resistance around 8350's , it will straight away go for 8500's - small pullback -then 8600's.
On Downside Nifty has very strong support @8000's,but some valid fundamental thing needs to happen to break this level sooner or later to retest 7500-7700's. After that markets will touch 9000 mark. If 9000 happens straightaway that it will be fragile.
Dont miss to note the double top @8295, which means market can move lower if Double top works.Both these scenario's gets complex with Brexit poll news. So wait till results then look at charts to make a decision.
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