Closing Price 13258
If we observe the current rally and co-relate with structure we saw in Jan - Feb 2020, we observe that it has completed a mirror image pattern to the tune of 50%
- the current channel size matches the size of red channel
- the upward slope in blue channel matches the downward slope in red channel
So far so good.... (When we had posted the idea Is Nifty heading towards 13240.... on 19 Nov 2020, this was the vision behind the idea...)
However the job is not done here. This only keeps me alert not to get too carried away. Although things look very , there is a possibility of Nifty trying to retest sub 13000 levels. I'm not as such but I am open to the idea of Nifty taking a pause before it unleashes the next level of up tick possibly some time early next year....
So on any dips I would keep an open eye to accumulate quality stocks to go Long.
"It is not who is right, but what is right, that is of importance." - Thomas Huxley and
we should always respect what price tells us. The pattern would get invalidated if Nifty closes below 12430 odd levels
Do Hit Like button / comment below and let me know what you think of this...
Follow and learn
Take care & safe trading...!!!
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
In trading having a view is one thing and managing risk is another.
I prefer a trading style where I am not dependent on being right to be profitable, rather the focus is on managing situations and being profitable in different scenarios...
Yes in my previous 2 post in Nifty, I have said that Nifty might get support in the range of 13030-13065 and that 13000 would be very crucial. But then here we are talking 2 different time frames and 2 different trading styles.
The strategy in hourly channel is for up to 10 Dec weekly expiry only, where as this is the outlook for the next 6 months and strategy is to accumulate good stocks especially on dips...
Now whether Nifty actually falls that much or carries on further without fall... that is something only time will tell, But what we can do best is have a set of Plans ready Plan A and Plan B, have strategies set for both the scenarios and then once in the trade, keep our focus on risk management.
As of now, the data system that I look at, there is no indication of a quick fall. So, the probability of strategy mentioned in hourly chart view being profitable looks strong. In case my Data system suggests otherwise, would update the same accordingly...