Technicals: Nifty will slide unless it can break past 6210

The Nifty has been struggling to get past its life-time high at 6,358. A look at the short-term price chart indicates that the Nifty is tracing out a bearish sequence of lower highs and lower lows.  From the 15-minute chart featured below, it is evident that the index is moving within the confines of the blue set of lines.

For 15-minutes chart, Click here

The middle blue line is the key reference point and the trend remains bearish until the price moves past this centerline. The real level to contend with is the red balance line at 6,210.

As long as the Nifty trades below this red line at 6,210, the path of least resistance would be on the way down. As highlighted in the daily chart of the Nifty featured below, the open gap at 5,780-5,800 is the next destination.

For daily chart, Click here

A break below the recent low of 5,972 would indicate that the Nifty is headed towards this target at 5,780-5,800. Until there is a breakout above 6,210, there would be a strong case for a slide to 5,800.

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