Three days of gains, Nifty is now at point of breakout: will the Index move up?

The Nifty closed at 5522, up another 42 points, giving the index three consecutive days of gains. We can identify the resistance levels for the Index somewhere around 5550. If the Nifty were to close above this resistance, then we will have a breakout on the upside. The market is certainly giving many whipsaws, with periods of sudden optimism and pessimism. This is the nature of the trading range. When prices start moving up in the range, we have an impression that everything is going to be fine, see prices are moving up.
When prices start moving down, we get pessimistic – range will break down. What actually is going on is – just noise inside the range. A decisive trend emerges when prices move out of the range. Now, the Nifty did go below 5400 so we had a decisive breakdown of the range. Then what happened? Well, the index turned back, move above the half way mark at 5500 and is now currently higher than 5500. This raises the question: are we confronted with a false breakdown? With some regret, there is no clear answer to this question. The Market itself will tell us if the earlier breakdown was a false move. We have a pivot high identified earlier – 5535. A close above 5535 will give us a higher high. A close above 5600 will give us a confirmed breakout on the upside, but, then, even this can fail.
What happens if we have two failed breakouts - one on the downside, then one on the upside? Well, this would certainly be a choppy market – we have to accept such movements and hope that the choppiness will end soon.

Nifty Levels: Today (Thursday) was another NR7 day. We can usually expect a trust after NR7 days. Therefore, if the market begins to move up or down, go with the flow, chances are there will be a trending day.