Don't go Short just now! wait for signs...

Nifty today has made an interesting pattern today on the Daily charts...which is known as Island reversal. If you see Nifty has made a gap up opening of exactly the same amount as it had made an earlier gap down opening few months back, precisely on 5th August, and this time the Gap up breakout has been with Huge volumes. The Nifty now should possibly find a resistance at 5420 levels and then at 5500 levels.

However this would be to early to make a call for a Bullish Nifty, if the Nifty is able to sustain above the 5400 levels and the Gap with which it has made a Opening today (28/10/2011) doesn't get filled within 2-3 days all the bearishness in the market could be seen going away.

It would be advisable for the Investor's to wait for the 5420 levels, if the Nifty is able to take out this level with volumes and sustains above it one can go long on Nifty, but for the time being the advise would be don't go short now, WAIT FOR THE REVERSAL.

I would be Updating on My blog as soon as the Reversal happens but till then DON'T GO SHORT.