Are we over with one year Profit Booking?

Today i shall be talking about Nifty charts through a larger scope of horizon which is Weekly charts as some interesting facts have came up. As you all can notice in the chart, Nifty had been trading strictly in downside channel since the life high last March and for the first time in 12 months we have closed above that channel, Hurraaaaay!!! Am sure many of you are pulling up your socks to jump in with some liquidity on Monday but i would say WAIT!!! Though the close is positive on the charts and also the indicators i follow are signalling strength for the rally, we have opponents on other side of the game! The most crucial fear is the 50 WMA crossover 100 WMA as i have marked with a Red Arrow. That’s posing a serious threat for medium term investment as its a surely a Sell Signal.  Secondly, this weeks close has been with a doji which indicates a pause to current trend, though its not necessary that we can see a downside but we have to stay cautious! So Monday’s opening would give more significance to Doji and give some idea whether we are over with one year profit booking? As of now we have resistance as 7927, 8055 while supports are 7868, 7847. So strategy for my traders is to hold longs recommended on 11th April with trailing Stop loss at 7847!!

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