Getting closer to breakout

Nifty chart has been pretty confusing these days and today we have added one more day to confusion. As we all can notice in the chart we have got another “Doji” type candle which is indecisive in nature. If we analyse Nifty from different angle’s then its getting more and more confusing. Candle stick patterns have failed and today we have got a Doji at resistance line of 7204. Though it is the level near to a strong breakout but volumes today is not supporting my view for the long breakout. But if we look at indicators, below in the chart,  they have given bullish crossover with their Moving average. Secondly, derivative data is suggesting 7000-7100 as strong base for next week as much writing on PUT was witnessed. Thirdly,  global markets have given bullish breakouts from the consolidation which means that Nifty should compile with their trend. So overall charts are confusing but biased towards long. Crucial levels for tomorrow at 7204 on upside. While for downside there is not specific level, but shorts would get stronger if the open is below 7127. So safe traders avoid markets, risk takers stay long but keep sl of 7100 the opening is gap down.

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