Some people might be scared of going long at this juncture, specially seeing a small dip after a single day rally of 13th April which lifted Nifty from 5748 to 5900. Well, Im still bullish because of the two signals I found on this chart.
1. Previous resistence of 5600 which was tested twice on 18th Feb and 4th March was breached on 25th March with a significant gap up.
2. Occurance of bullish engulfing pattern on 12-13th April. The relative size of the bodies in the first and second days is very crucial. 12th is characterized by a very small real body but 14th is characterized by a very long real body, this strongly indicates that the bearish power is diminishing and the disparity of white versus black body is indicative of the emerging bull power.
I would suggest to make fresh long at 5725 level or at current level with a stoploss at 5725.
HAPPY TRADING.
