In previous post it was clearly mentioned that weekly close above 8480 levels may prove fatal for the bears and the darling may continue its northward journey intact. As expected the darling witnessed sharp recovery during intraday having opened gap down due to weak global clues. In today's session the darling found exact support at its 200 DMA and took U-Turn which is a clear signal by Bulls that they are in a no mood to weaken their grip. As per Fibonacci Retracement the darling found resistance around 50% placed around 8540 levels. Technically it is dancing above its short term moving averages and has also developed Falling Wedge Pattern on a daily chart which has already been discussed in earlier post. Besides other Technical Indicators are still in a quite bullish territory and VIX closed in red and still in a comfort zone around 16 levels so 8672 levels can be expected in a short term where the Golden Ratio is placed.
So the view is clearly in favor of the bulls and as long as 200 DMA is intact traders should utilize every dip as a buying opportunity. The simple strategy is to jump on the bandwagon rather than bucking the trend when the prices are trending higher. As long as 8380-8390 area is intact the darling may trade with positive bias in sessions ahead. Immediate support at 8480 while immediate resistance 8540.
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