There is a pattern which is forming on both indices Nifty & Bank Nifty & have been chopping upside for last couple of days.
What we have
pattern(shown in red on top end of the channel) always & almost follows swiftly to the starting point key level - in current case it is 9880 level.
at Highs of 10034 but PRZ can extend till 10070-10075 Zone on the upside.
How to execute
Either sell below 10000 - 9980 Zone or sell on upside in the zone 10030-10050 after observing that it faces resistance in the zone & holds on upside & falls below 10015 later.
Target 1 - 9880,
Target 2- (Below 9880) - 9800-9775,
Target 3 - (Below 9775) - 9685-9700
Target 4 - (Below 9685) - 9575-9600
Previous Update - USDINR- Nifty -Intermarket Analysis -250 pips & fall from 66.00- (Turned upside as aniticipated from 64.80-65.20 zone)
Our Confirmation zone to trade short is 10000-9980 for safe traders & won't trade unless market indicates weakness or sudden move from the zone 10030 - 10050 downside.
Harmonic Pattern Becomes Invalid above 10075 - We can only trade if we get some market confirmation else we are not interested to burn our hands.
Zone of 10060-10075 is the testing zone where XA leg completes 161.8% its upper boundary but we have no confirmation of selling.
We either look to sell -if there is sudden reversal from current zone or below 9980-10000 zone which will be major confirmation for shorts or selling.
If you are risk taker & can aford to lose 15-20 odd points then also sell from current zone -if you notice sudden reversal with stops above 10075.
Last price@10010 – Cracking down right at the top 10067- Awesome!
Keep booking partial profits in between.
Partial Profits - we book on add on lots - keeping 1-2 lots for bigger moves, later trailing your stops at entry price@10065 so we won't lose anything in the trade. This is risk management which ensures that we have win-win situation.
Last Price - Bank Nifty@24265
Bank Nifty as well cracks 150- 200 points from top@24450 levels. Wow!
Here we are at 9980 - Book Some Profits Here & sell below 9980
This is the true sign of any wedge pattern.
"Last Night update"
Wedge pattern(shown in red on top end of the channel) always & almost follows swiftly to the starting point key level - in current case it is 9880 level.
Last Price@9970 - Closed@9984
Global cues are better so a possible bounce cannot be denied & we can look for a bounce to 10025-10035 zone which was yesterday's gap zone for resistance.
In case, Prices get resistance in gap zone & starts falling back below 10015 then we can plan for selling with day high as stops.
Last Price@ 10000
Opened gap up on global cues & suggested we should look for gap zone as resistance - travelled close to 10021 in the gap zone & slipped below 10015 - trigger point for selling.
Got 1st dip@9977
Next we plan to hold sell or short positions close or below 10015 for targets -9950-9955 & Later below 9950 for 9910-9920.
10021 - is the level we close all sell positions & do not trade unless if holds in gap zone 10020-10035 for short term targets of 10050-10075
Made Recent High@10031
There is bearish harmonic so be careful on long or buy trades as I said short term target for long positions & moving below 10015 can be pressure situation for bulls.
Targets could be 9980-9950 below 9950 - 9910-9920
Going above 10036 - X Wave - Invalidated short term bearish harmonic whereas going below 10015 & later psychological level of 10000 will put bulls into pressure again.
Any move above 10050 - we need to assess back.
One point to be added - harmonic pattern failures - I consider only if it sustains above X- leg high ( In our case 10036) - It made recent of 10037 & not sustaining is keeping some hope alive for bears. Only pressure is required for downside move.
We are close to start the action.
Thinking with super sonic speed because market never gives time in action. There is bearish gartley as well at 10037 so 2 bearish harmonic patterns & that's why all drama not going above 10037.
Key Level@10037 broken after 2-3 attempts - we all know bulls will come in picture so closing the update. Thanks for all fun & excitement which market gave in last 2 days.
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ