NIfty Technical Review - Cautious approach at higher levels
On weekly chart , we can see nifty trading in a range of about 500 points. ( 10140-10180 - 9680-9690 )
As long as it is trading in this range, expect lackluster moves..
If we look at the price action closely , it is observed that a potential peak had been formed at 10140 levels , from where index saw a sharp decline, though it took support near 9680 levels, and saw rebound rally to 10140 levels and went beyond it and tested 10180 levels, but the rally couldn't sustain , and again saw a sharp decline. Second rally further confirmed the prior resistance zone of 10000-10200.
This entire price action is suggesting that
NIFTY
facing resistance near 10000 levels. and it could a be double top formation. Though its early to say, because index is still finding support near 9700 levels, Hence a break below 9700 levels is needed to support double top formation.
Keep an eye on 9700 levels, break below it , could see sharp moves towards 9500, 9200 and 9000 levels.
Lets check monthly chart as well to confirm the weekly patterns
Last two monthly candles are indecisive weak candles, suggesting supply near those levels
August - Hanging Man
Sep - Shooting Star
As long as it is trading in this range, expect lackluster moves..
If we look at the price action closely , it is observed that a potential peak had been formed at 10140 levels , from where index saw a sharp decline, though it took support near 9680 levels, and saw rebound rally to 10140 levels and went beyond it and tested 10180 levels, but the rally couldn't sustain , and again saw a sharp decline. Second rally further confirmed the prior resistance zone of 10000-10200.
This entire price action is suggesting that
NIFTY
facing resistance near 10000 levels. and it could a be double top formation. Though its early to say, because index is still finding support near 9700 levels, Hence a break below 9700 levels is needed to support double top formation. Keep an eye on 9700 levels, break below it , could see sharp moves towards 9500, 9200 and 9000 levels.
Lets check monthly chart as well to confirm the weekly patterns
Last two monthly candles are indecisive weak candles, suggesting supply near those levels
August - Hanging Man
Sep - Shooting Star