Every candlestick pattern can be called a pattern only if there is a followup action in the next couple of days, and the Bullish harami candle of yesterday got a confirmation straightaway today.
Now, what next? Logically, the previous all time high should now be crossed in coming days.
Below are some facts based on charts of futures and options that can help in managing the long trades.
Firstly, bears can claim that the rally today was just a gap fill (8100 to 8134 was a gap over the weekend) on Nifty futures.
To negate this, Nifty futures has to cross the first hurdle at 8148-8150, which was a double top. There are some resistances above that too.
PCR at 8100 strike price is 0.9 as of now, and this will give further hints.
This has to rise way above 1.2 as soon as possible. This will happen when 8150 is crossed, and also when 8100 CE shorts are covered and at the same time, OI of 8100 PE rises (should go well above 50 lakhs).
Now, what next? Logically, the previous all time high should now be crossed in coming days.
Below are some facts based on charts of futures and options that can help in managing the long trades.
Firstly, bears can claim that the rally today was just a gap fill (8100 to 8134 was a gap over the weekend) on Nifty futures.
To negate this, Nifty futures has to cross the first hurdle at 8148-8150, which was a double top. There are some resistances above that too.
PCR at 8100 strike price is 0.9 as of now, and this will give further hints.
This has to rise way above 1.2 as soon as possible. This will happen when 8150 is crossed, and also when 8100 CE shorts are covered and at the same time, OI of 8100 PE rises (should go well above 50 lakhs).
If all of the above happens in the next couple of days, logical target for the 8100 CE is near 140!! (cmp 68)
So, keep an eye on the OIs of 8100 CE and PE tomorrow to get a hint regarding future price action.
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