8 April : Splendid Breakout in Nifty to 3575 to 3800

Today Nifty has given a breakout from a range of 2525 to 3150. Which gives next target 3150+(3150-2525) =3775 according to the rectangular pattern and according to Fibonacci Retracement of 4650 to 2537 gives target of 32.8% is 3344 it is achieved after this gives target of 61.8% is 3842. In bear market bullish target cannot achieved 100% but it usually hit 60-70% of the target which means 3575 approx. must be possible target with stop loss of 3150. 200EMA is placed at 3405 which will give resistance to this uptrend and in MACD divergence is seen and it is a cause of concern. But other indicators like RSI, Stochastics, Parabolic Sar are giving strength to uptrend. For short wait for clear sell signal and for long place strict stop loss of 3150. Before trading check your risk profile and consult your financial advisor because trading may have losses.