Finally we saw some strong move on Nifty after many sessions but yet its not that convincing for a reversal for a long term horizon. As Dow Theory suggest that unless we get a clear reversal signal, we should believe that the existing trend is intact. So i am still not fully convinced for a upside reversal. As we could notice that Nifty is approaching a chaos area of many resistances,  it makes me to take some profits on the trading position for the longs. Lets take resistances one by one….Firstly 7265, which is a channel line resistance. Second resistance is at 7350 which is a fibonacci resistance and thirdly, 7363 which is the unfilled gap. So guys we need to be a lil cautious but it doesnt mean we should skip trading. My view on the Nifty is intact as i mentioned yesterday with Upside target of 7350. Stay hedged!!!!

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