NIFTY moves up without retracing to value zone and is close to previous high levels. Value zone moves up to 5086. With price hovering around 5110 levels, the likeliness of it reaching or intersecting with the averages seems bleak for today.
Today's high shows a double top on the hourly charts and NIFTY turning down from 5138, which is just a few ticks higher than 5135 recorded on the previous move gives signals that this up move is likely to turn around.
As we have stated earlier, NIFTY holds a broad range of 5150-4950, it has moved close to resistance today. In case the markets turn down from here, it needs to close below 5065 levels from the present chart readings. If this has to happen there should be a big gap down open on Monday. What is the possibility?
Though the difference between the prevailing price and the indicated reversal levels are higher, an adverse move may not be ruled out. The markets at the present juncture do not have a smooth flow of price & movements.
Europe at present shows shallow moves, but US markets will decide the direction later in the evening. Probabilities stay leaning towards bearishness from here. This comes to the end of another awe filled week which faced whipsaw trades and high volatile moves, still closing positive for the week.
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