Had started the day with 5865-5900 being the "potential reversal zone" to be used for shorting if negative-divergence in Hour Chart persists with stop-loss at 5910.
Although we reversed from 5909.xx , it was clear that the "potential reversal zone" was not good enough and the EOD candle(by not closing the gap created in the morning and then by closing above the 'potential reversal zone") confirmed that our labels of treating the upmove from 5477 as retracement of 5971-5477 have been invalidated.
Above Chart-- clearing the TL with a gap-up and retaining the gap till end further confirms that and illustrates how momentum in Daily Charts asserted its superiority over Hour Charts where the divergence persisted as the price made a new high.
And for the next few days, we may see Nifty spending time between 5971 and 5790:
And I would not be surprised if Hour Charts get a chance to cool off to 5790 zone before moving up to satisfy the following Wolfe:
Though EW wise the pattern illustrated below looks quite possible:
Although we reversed from 5909.xx , it was clear that the "potential reversal zone" was not good enough and the EOD candle(by not closing the gap created in the morning and then by closing above the 'potential reversal zone") confirmed that our labels of treating the upmove from 5477 as retracement of 5971-5477 have been invalidated.
And for the next few days, we may see Nifty spending time between 5971 and 5790:
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