NIFTY is gaining at a slow pace and that adds to more and more strength. MACD is in the verge of taking off previous high, this means more bullish strength, but MACD Histogram has started retracing bearish divergence. This is the confusion that the market gives on following single indicators. A combination of them would give a collective opinion. For us the EMA's are rising and along with that the MACD lines too, so it confirms that the bullish trend is likely to continue further. While an indicator going opposite to the prevailing trend indicates caution stating, 'Please be alert there is some points which needs concern here'.
The value zone at present is 5086-5118, a price move into this zone can be used as entry signal and traded long on the swing position above the recent high. From the prevailing price the value zone is quite far away. Let's wait and watch.
Trend long which is open from 5035 levels is nearing 140 points peak profit. Hold on trend followers, who knows this may even be a Multi R Trade too. (R – is taken as the risk per trade)
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