Nifty futures opened near the close and then rallied ahead to make a high of 5896.50 and closed shops at 5894.50. The intraday resistance of 5859 observed yesterday was cleared today to make a new high and closed at the higher end of the range. Now as per our monthly intermediate the level of resistance is 5901. On charts price action has made a higher high with higher low so trend is up. RSI has hit the 55 level and needs to sustain above it for further momentum. MFI is moving up supporting the trend and needs to sustain above 40 and cross the 60 level for further momentum. MACD is last to turn up and is taking its time to turn.
The hourly MM levels show the level of 5859 crossed to move above it. Now the next target is 5898 and we are just short of it. Observe that the resistance levels on this chart are mostly forming the support in intraday movement so one can try to use them for entry if missed out earlier or use the same as stop loss to preserve the profits. Next resistance is 5938 and 5977 on MM levels( not shown in chart).
Above charts shows hourly futures with new oscillator i.e. awesome oscillator. Some explanation for this oscillator is given below.
Awesome Oscillator :
Bill Williams’ Awesome Oscillator (AO) is designed to show current market momentum and is displayed as a histogram. The Awesome Oscillator is created using the difference between the 34-period and 5-period simple moving averages of the bar’s midpoints (H+L)/2.
Each bar of the histogram that is higher than the preceding bar is green. Each bar that is lower than the preceding bar is red.
Awesome Oscillator Interpretation and Signals :
Zero Line Cross
As with other oscillators such as CCI, the Awesome Oscillator generates a trading signal when the zero line is crossed. A buy signal is generated when the histogram is crossed from below. A sell signal is generated when the histogram is crossed from above.
Saucer
A buy signal is generated when the oscillator is above the zero line has two descending red bars are followed by a green bar.
A sell signal is generated when the oscillator is below the zero line and two ascending green bars are followed by a red bar.
Twin Peaks
A buy signal is created when the histogram is below the zero line and the last indicators low is higher than the preceding low. The histogram must remain below zero between these two troughs. When the higher low is made and followed by a green bar the buy signal is generated.
A sell signal is created when the histogram is above the zero line and the last bars high is lower than the preceding peak. The histogram must remain above zero line between the two peaks. When the lower high is made and followed by a red bar a sell signal is generated.
For the above chart we see MFI hitting the 100 level and closing below. RSI going flat for the day and level of 68 is to be watched on downside. Awesome oscillator forming two red bars showing some exhaustion on this time frame.(A sell signal is created when the histogram is above the zero line and the last bars high is lower than the preceding peak. The histogram must remain above zero line between the two peaks. When the lower high is made and followed by a red bar a sell signal is generated.). So one needs to watch the trend if trading for this time frame..
Intraday traders can use the levels on spot nifty given below to trade on Tuesday.
Spot Nifty Levels for Trading on Tuesday :
No trade between 5880 and 5918(To avoid whipsaws)
Buy above 5918 sl of 5898
targets 5937-5956(add positions, breakout on the upside),
5975-5994-6013-6032-6051.
Sell below 5880 sl of 5900
targets 5861-5842(add positions,breakout on the downside)
5823-5804-5785-5766-5747.
Happy Trading !!!
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