The first chart shows a clear short term trend for nifty. Nifty has broken out of the short term trend showing bullishness. It has also managed to close above average after a long time and this trend may continue upto 4250-4300 and 4440. Above that we may see further strength and test the 3 months average of 4700.Other the other hand if Nifty sustains below 4080 for a while then we need to re consider being long. Best option would be to use a trailing stop loss or use final stop loss of Nifty close below 4030.
A more interesting thing is the support nifty has taken on a fairly long term support line. It has managed to close above that last week and even this week it has not broken it. This could be a sign of a good reversal. But not to forget, a fall is still possible. As mentioned 3 days back where long term investors could start accumulating stocks could use this support line as a trigger for stop loss. Where in they would get chance to buy further on dips below the existing lows.
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