Rangebound Trade

The massive consolidation is going on in Nifty.

You can almost feel it like steam trying to burst through a lid, or pressure building up that either will shatter this level… or fizzle out and fade away like mist.

This suggests that the range will expand to become larger by either moving up to establish new resistance, or moving down by establishing lower support. We will let the market decide it.

Since we aleady come up a lot, space for moving down is more. Lets wait and watch who wins in Bull v/s Bear fight..

This post mainly serves as a point of interest, demonstrating how a higher timeframe can directly influence the behavior (support and resistance) of a lower timeframe, and why it’s important to know key technical price levels in advance if you trade mainly intraday.

Thanks,
Bhupesh