NEW DELHI: The Nifty50 climbed half a per cent on Monday to form a small bullish candle on the daily chart. The index has successfully closed above the gap zone between 10,736 and 10,702 levels hit on February 5.In addition, it settled above its 61.80 per cent Fibonacci retracement from the previous fall from 11,171 to 9,951 levels. Analysts expect the ongoing rally to extend going forward.The index has registered a robust bullish candle on the monthly chart, which has erased all the panic losses seen in March. Sustaining above this gap area logically gives the next target of 10,928, said Mazhar Mohammad of Chartviewindia.in.“However, owing to relentless strength displayed by the bulls in last five weeks, a pause or minor correction can’t be ruled out going forward. Traders are advised to remain on the long side of trade with a stop loss below 10,600 on closing basis,” Mohammad said.The Nifty50 rose 47.05 points, or 0.44 per cent, to 10,739. This was the third day of consecutive rise for the index, during which it formed higher highs and higher lows on the daily charts for last three sessions.This indicates that supports are shifting higher gradually, said Chandan Taparia of Motilal Oswal Securities.The index has to hold above 10,680 to extend its move towards 10,800 and 10,830 levels, Taparia said, adding that supports have shifted towards 10,638 and 10,580 levels.“The Nifty50 managed to close above its 61.80 per cent Fibonacci retracement from its previous fall from 11,171 to 9,951. If the index holds above 10,705, it may retest its previous all-time high level in the coming weeks or months. On the daily price chart, the 20-day and 100-day SMAs have witnessed a bullish crossover, which signals bullish sentiments and sustained strength ahead,” said Rajesh Palviya of Axis Securities.If the Nifty50 manages to sustain above 10,740, it may rise further towards 10,780 and 10,820 levels, but any violation of the 10,720 level will trigger some correction, Palviya said.