NIFTY rolling dice at the high’s

NIFTY is rolling dice at the high's close to the channel high while its MACD histogram continues its down tick. MACD lines are rising but slow, averages are fast approaching price, the gap between price and EMA is getting narrowed. Daily chart is trending with consolidation going on at the higher levels. It is either a small sideways consolidation or a bear move to the value zone. Value zone on the daily chart is at 5161-5220, a price move into the narrow zone will give us a swing long trade entry on the daily charts.

Hourly charts though in a bullish trend took a nice dip into the value and have turned up nearing close. MACD histogram forming a deep valley is not a good sign on the bullish trend. MACD lines have a bullish top and needs a re-test of high or beyond to give a strong bearish divergence.

We are holding long position on both Swing and Trend systems after closing our trend long position at the days open with a 270 points stupendous gain. The new positions have closed positive to our entry. Global cues at the time this writing are weak. As we have an uptick on the closing bar we need to wait to further signals after 10.00 am in the next session.

Tomorrow being the expiry day for futures contracts, there is high volatility likely in the markets. Rating system is strong on the closing today. Value zone on the hourly has moved up to 5314-5326 a good improvement compared to previous bars.

As long as we are trading with the system rules, we are due to get good returns in the long run. There is a possibility of some give backs after a good trade and we have just finished a wonderful profit trade. We will go as per our charts.