The daily chart of the Nifty 50 showed a bear breakout of a small wedge top, which may result in a small trading range for a few bars in the following week.<\/p>\n\n\n\n
Nifty 50 futures<\/h2>\n\n\n\nThe Weekly<\/em> Nifty 50 chart<\/h3>\n\n\n\n![\"Nifty](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/Nifty-50-Outside-Bar-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- Bears should hold off on taking any sell positions until they see strong bear bars because the market is trading inside of a tight bull channel and the bars on the left are powerful bull bars.<\/li><\/ul>
- Bulls should buy since the market is in a strong uptrend and because the all-time high price and measured move level could act as a magnet.<\/li><\/ul>\n
\n- Bulls can go long by placing a stop order at the high of the outside bar or a buy limit order at the low.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Take note that only twice in the past 10 bars\u2014on bars 2 and 4\u2014have bears been able to push the market below its prior bar’s low.<\/li><\/ul>
- Bulls immediately bought the last time this occurred (i.e., on bar 2), and as a result, bar 2 was followed by a powerful bull leg.<\/li><\/ul>
- Bar 4’s lower tail suggests that many bulls had placed buy limit orders at bar 3’s low. Bulls who bought at bar 3’s low will (must) carefully monitor the following bar.<\/li><\/ul>\n
\n- If bulls are successful in obtaining a bull close, they will keep their position; but, if bears are successful in obtaining a bear close, this may disappoint bulls and cause a brief bear leg before a leg up to the all-time high level.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market gave a strong bull breakout of the head and shoulders bottom.<\/li><\/ul>
- Because the bull channel is tight, bears should refrain from selling using stop orders.<\/li><\/ul>\n
<\/a><\/figure>\n\n\n\n\n
- \n
- General Discussion<\/strong>
- Bears should hold off on taking any sell positions until they see strong bear bars because the market is trading inside of a tight bull channel and the bars on the left are powerful bull bars.<\/li><\/ul>
- Bulls should buy since the market is in a strong uptrend and because the all-time high price and measured move level could act as a magnet.<\/li><\/ul>\n
- \n
- Bulls can go long by placing a stop order at the high of the outside bar or a buy limit order at the low.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Take note that only twice in the past 10 bars\u2014on bars 2 and 4\u2014have bears been able to push the market below its prior bar’s low.<\/li><\/ul>
- Bulls immediately bought the last time this occurred (i.e., on bar 2), and as a result, bar 2 was followed by a powerful bull leg.<\/li><\/ul>
- Bar 4’s lower tail suggests that many bulls had placed buy limit orders at bar 3’s low. Bulls who bought at bar 3’s low will (must) carefully monitor the following bar.<\/li><\/ul>\n
- \n
- If bulls are successful in obtaining a bull close, they will keep their position; but, if bears are successful in obtaining a bear close, this may disappoint bulls and cause a brief bear leg before a leg up to the all-time high level.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market gave a strong bull breakout of the head and shoulders bottom.<\/li><\/ul>
- Because the bull channel is tight, bears should refrain from selling using stop orders.<\/li><\/ul>\n
- The market gave a strong bull breakout of the head and shoulders bottom.<\/li><\/ul>
- Bar 4’s lower tail suggests that many bulls had placed buy limit orders at bar 3’s low. Bulls who bought at bar 3’s low will (must) carefully monitor the following bar.<\/li><\/ul>\n
- Bulls immediately bought the last time this occurred (i.e., on bar 2), and as a result, bar 2 was followed by a powerful bull leg.<\/li><\/ul>
- Take note that only twice in the past 10 bars\u2014on bars 2 and 4\u2014have bears been able to push the market below its prior bar’s low.<\/li><\/ul>
- Bulls should buy since the market is in a strong uptrend and because the all-time high price and measured move level could act as a magnet.<\/li><\/ul>\n
- Bears should hold off on taking any sell positions until they see strong bear bars because the market is trading inside of a tight bull channel and the bars on the left are powerful bull bars.<\/li><\/ul>
![\"Nifty](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/Nifty-50-Potential-Trading-Range-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n