Weekly price action is positive

Nifty continues to oscillate back and forth making short-term trading exposed to one of the key risks involved and that is whipsaws. A range play that is hitting the outer edges of the previous day's range indicates an expansionary price action.

The range from the last six trading sessions has been the same, given hindsight bias, a Diamond pattern is seen in price action.

On the Daily timeframe, the Trend remains neutral with no bias while the weekly price action is positive indicating the long-term trend is intact and this sideways price action is a probable dip.

The closing for the day has been on a strong note given the sudden move in the last hour of price action. The range remains 17,380 – 17,000 in short term and a break should be decisive for the next leg of the uptrend.

The breadth remains positive with most components of the benchmark above key mid-term and long-term MA while oscillating near short-term 10 days MA. Hence a sustained price action should further boost the momentum. One must remain bullish with buy-on dips as an approach as long as the market is above the 17,000 mark.

(The author is Technical Analyst at Finversify)