Thread by @manavtechnicals

#Nifty Monthly @10116
-Prices face confluence resistance at 10350-10700 which is the upper band & price resistance zone
-Historically the upper band has often acted as a Bear resistance level and new Bull Run has started only on a break & close above the upper-band(yellow line)

-The Upper band (Yellow line) has too marked important lower tops previously and currently Nifty has tested the upper resistance band.
-The current structure would indicate a bullish sentiment and confirmation only on a monthly close above 10700 levels.

-The previous bear market retracement rallies have retraced 50-61.8% of the previous fall and made a lower top
-Nifty 50-61.8% retracement level is around 9910(50%)-10500 (61.8%) which can be another resistance factor

-The current structure would indicate a bullish sentiment and confirmation only on a close above 10700
-In the past since 2007, the bear market cycle has lasted for 14months avg of 425 days which is likely to end in Feb2021 (*IF*) this is a bear market without V shape recovery

-For risk management, one must avoid new aggressive long-term positioning into stocks and take calls only once breakout above the upper band threshold limit.
-Must ensure taking short-term profits and keep cash in cash.
-There can be volatility and whipsaws in this zone be ready