Hello Traders,
NIFTY 50 declined on May 18 to 8823 (closing) and found support in this area. The following days, N50 was not able to exceed the candle`s high @9158, on a closing price too. So this behavior is to my view not bullish. It is a sign of weakening performance, of weakness!
The wave structure off the latter days did not give a clear message of what could be next, different interpretations do exist. But as long as N50 is trading below 9286 and in special below @ 9584, a possible wave c high on May 13, my focus is to the downside.
Please note, that the countertrend from the March 24 low (@ 7511) took the shape of a „wedge“, implying a bearish structure. But it is also probably, to interpret this shape as a „Leading diagonal“, which is a bullish pattern and the start of a massive advance!
The structure of the April 30 high @ 9889 is only a „three-down“ on a daily basis, so here, it could be all of the declines.
As you see, many interpretations could be valid and as long as one clear message is not playing out, we have to be patient.
Traders who like to short N50 have to set and follow closely with their stops!
Only a close below the area of 8055 (April 3) would alter any bullish view and open the door to the next wave of declining price!
Have a great Sunday.....
ruebennase
Feel free toa ask or comment!
Trading this analysis is at your own risk!
NIFTY 50 declined on May 18 to 8823 (closing) and found support in this area. The following days, N50 was not able to exceed the candle`s high @9158, on a closing price too. So this behavior is to my view not bullish. It is a sign of weakening performance, of weakness!
The wave structure off the latter days did not give a clear message of what could be next, different interpretations do exist. But as long as N50 is trading below 9286 and in special below @ 9584, a possible wave c high on May 13, my focus is to the downside.
Please note, that the countertrend from the March 24 low (@ 7511) took the shape of a „wedge“, implying a bearish structure. But it is also probably, to interpret this shape as a „Leading diagonal“, which is a bullish pattern and the start of a massive advance!
The structure of the April 30 high @ 9889 is only a „three-down“ on a daily basis, so here, it could be all of the declines.
As you see, many interpretations could be valid and as long as one clear message is not playing out, we have to be patient.
Traders who like to short N50 have to set and follow closely with their stops!
Only a close below the area of 8055 (April 3) would alter any bullish view and open the door to the next wave of declining price!
Have a great Sunday.....
ruebennase
Feel free toa ask or comment!
Trading this analysis is at your own risk!