Nifty IT Medium term view Short

Nifty IT IndexNSE

Description

⋅ Apr 26, 2017 7:28 PM

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

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"Be sure you put your feet in the right place, then stand firm." - Abraham Lincoln
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Take care and safe trading...!!!