Nifty has closed above multiple resistance of 11700-11720 which will now act as a support and can be used to initiate buy position (can buy call) with stop loss below 11550 (hourly closing) for target of 12060 (161.8% retracement of recent minor correction)-12110 (previous top). Schiff pitchfork's resistance has been broken twice and now index is trading above it which also signals probability of touching next resistance line. Green line is showing convergence of multiple resistance and should not be treated as neckline for inverse H&S. H&S can be a continuation pattern. Orange line is showing supports formed in last 48 days. Pink line is drawn to show the convergence of orange and green line and is also supported by previous multiple supports. RSI & MACD are showing probability of some profit booking. ROC is trading above 0 line confirming positive trend to continue for time being. Supports can be used to initiate long position in 12000 SP CALL or short position in Nifty Put of strike price below 11400.
Supports : 11816-11780-11710
Supports : 11816-11780-11710