In my last two post i had been repeatedly saying that the overall trend of Nifty has turned positive with upside target of 9800 but had also mentioned about a knee-jerk reaction with minimum target of 8480 and we did achieved it tomorrow. But after profit booking we saw strong up move back in last two session. Some might say its a false recovery but i would like to inform them that the recovery was exactly from the channel support mentioned few days back. Novice traders might feel looking at the graph that yesterday we broke support so i am sounding wrong but as Dow Theory suggests that consider closing price while analyzing a stock price. This was the perfect example how much a closing price is important to follow for a trader. Now though we are still in overbought position on a daily charts, we are still going to witness a positive move up till the resistance line at 8720 while our trailing stop loss could be raised to 8480 spot level. Stock specific movement is still to be out perform for a traders. Be cautious though as volatility would prevail.