That said, lets look at the daily charts...............
Here, Nifty gave a H&S breakdown a few days back.
Nifty made a low of 5663. Now if you look at the monthly charts, this was very close to the support line. Nifty reversed from there and right now is about 250 points higher.
Now we need to consider a few things that are happening right now-
1. Nifty touched the upper Bollinger band on 01-Jan-2013. After that we saw a move from 5950.85 to 6111.8 (160 points). If this upmove continues, we will again touch the upper band which is at 6007 right now and moving up. So with the previous move of 160, we can consider another 150 points from the point of contact. i.e. ~6007+150=~6150-6160. Which will be a new recent high, surpassing 6111.
2. H&S can now be classified as a partly false signal, as it only reached the first target. And right now Nifty is comfortably above the neckline. So, that is a bullish signal.
3. Global markets are not showing any signs of slowing down.
So all in all, if the current rally continues, we will see the same kind of momentum on the upside, as we have seen until now. I will post another little quirky signal that I stumbled upon with Bollinger band that supports this claim. And this will not stop until we have atleast touched 6350-6400. But this will happen (according to me), if and only if the Index manages to kiss the upper band.