April 2023 - resistance in the current rally?

nifty up nearly 800 points from lows and bnfty up by 1500 points. 17800 vl b resistance zone?

As it happens often, we have conflicting things -

  1. Nifty has been making lower highs since ATH failure. So last pivot high is one logical area to look at. Prices are stretched so can get short term pushback.
  2. This up move has the strongest momentum in bounces so far and is bouncing off a failed bear flag. So there is a decent chance that rally can continue with some pauses in between and try to test ATH again. Will have to see how price holds once(if) up move exhausts. We have been in consolidation for over a year and good breakouts ( if it happens) from such bases tend to run. Would be nice if this happens, everyone gets chance to make some money.

  1. Other factors like yield inversion gives some bearish overhang in the long run. There is decent chance that markets may come under strong stress sometime within next year or two. ofc, we could be x% up from here before that happens too.