We are looking at a 8 year Nifty IT chart
Lets see what the chart is trying to tell us...
- Between 2009 to 2015 the price has risen from 1933 levels to 12908 levels
- Since Jan 2009 till March 2015 the index has been making higher top higher bottom
- It is only after March 2015 that the index is seen making lower top lower bottom on a regular basis
Hence applying Fibonacci retracement level on the entire Bull cycle seen in NIFTY IT since Jan 2009 to March 2015 (roughly 75 months)
- It is further observed that since 2015 Price is trading in a Downtrend channel
- Blue trend line drawn from 2009 lows looks likely to be the Laxman Rekha (Make or Break line)
2 likely scenarios have been charted out...
Eventual target for NIFTY IT-8750-8600 zone which is 38.2% retracement level of the entire rise from 1933 levels to 12908 levels
- Time wise 38.2% of 75 months is 29 months giving us time till Sept 2017
- Channel support around Sept-Oct 2017 comes at 8750 levels
Things that one should consider before initiating a trade
- this is a medium term 6 months view
- Wait for the levels to come
- allow price behavior around key levels discussed in the chart to give further confirmation
- Understand the Risk involved & Reward potential
- Plan your trade accordingly
____________________________________________________________________________
"Be sure you put your feet in the right place, then stand firm." - Abraham Lincoln
____________________________________________________________________________
Take care and safe trading...!!!
Lets see what the chart is trying to tell us...
- Between 2009 to 2015 the price has risen from 1933 levels to 12908 levels
- Since Jan 2009 till March 2015 the index has been making higher top higher bottom
- It is only after March 2015 that the index is seen making lower top lower bottom on a regular basis
Hence applying Fibonacci retracement level on the entire Bull cycle seen in NIFTY IT since Jan 2009 to March 2015 (roughly 75 months)
- It is further observed that since 2015 Price is trading in a Downtrend channel
- Blue trend line drawn from 2009 lows looks likely to be the Laxman Rekha (Make or Break line)
2 likely scenarios have been charted out...
Eventual target for NIFTY IT-8750-8600 zone which is 38.2% retracement level of the entire rise from 1933 levels to 12908 levels
- Time wise 38.2% of 75 months is 29 months giving us time till Sept 2017
- Channel support around Sept-Oct 2017 comes at 8750 levels
Things that one should consider before initiating a trade
- this is a medium term 6 months view
- Wait for the levels to come
- allow price behavior around key levels discussed in the chart to give further confirmation
- Understand the Risk involved & Reward potential
- Plan your trade accordingly
____________________________________________________________________________
"Be sure you put your feet in the right place, then stand firm." - Abraham Lincoln
____________________________________________________________________________
Take care and safe trading...!!!
