Nifty50: OVER-HEATED market and some interesting calculations.

NSE:NIFTY   Nifty 50 Index
Nifty50 is found at the upper-end of bollinger band , which will be acting as resistance for the same.

Now some calculations.
Nifty50 made a low of 7893.80 in 2016
High just before the elections in UP: 8992.50
If we take the difference of the above two 8992.50-7893.80 = 1098.7 points

Now the low point after the measuring gap was created was 9019.30
If we add to that 1098.7 we get 10118. Nifty50 made a high of 10114.85. Pretty close right.

One can book profits at current levels or go short keeping SL at 10130.
The 20-day SMA could be used as a target, which is currently placed at around 9800
Comment: Trade did work wonderfully. Nifty Aug Futures made a double top formation at 10150, and since then been falling. I hope, you all found it helpful
9800 is also mid BB
ffshaikh bearishbull1968
@bearishbull1968, Yes right. It is, because the mid bollinger band is the 20-day SMA
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