In an earlier post, I had pointed out two different patterns in the Nifty –First, an ascending triangle which was already confirmed, giving a target of 5070 approximately, and, second, a bearish rising wedge which was under construction.
After I wrote that post, the Nifty has continued to move up, which touching 4970, up from 4800 which was the breakout point. It is anybody’s guess if the targets for this pattern will be achieved. The stop for this trade is 4800 – breakeven. Short term traders cannot have such a wide stop, and, they must manage the trade with their risk management principles. I have closed the long trade at 4970 approximately. I am a short term trader, therefore, my risk profile is also designed to take minimum risk.
I am giving below the Nifty chart with both the patterns separately identified. Thanks to the sharp rally on Tuesday, the resistance line for the rising wedge has to be redrawn.