The Index is trading near its resistance i.e. 15565-68, we have seen that the seller came into the action near the resistance zone and selling was seen in the index. The global market has seen retracement in the move and bounce back was seen in global markets, can expect a bit of the same in the Index as the correlation is high. We can see in every retracement the index is making a higher low and the hghs are the same, this indicates an ascending pattern. For this to be an ascending triangle it should atleast have 5 touches. We have seen 5 touches in the pattern, we will wait for the breakout on either side once the breakout is seen we can trade according to the breakout. In ascending triangles breakout on the downside can give a higher percentage of return and the risk is favourable. Again it depends upon many factors as the triangle is from near the low of intraday upside breakout can be expected as this triangle is a major reversal pattern, if the breakout is seen on the downside it would be a continuous pattern.

Advice would be wait for the breakout , trade as per breakout, if the breakout is on the downside and rsi is below 20 avoid the trade and if the breakout is on the upside and rsi above 80 avoid long.

GER30

Sep 27 2021

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