What is the Polarity Reversal Zone ?
When one level acts as support turns its role into resistance that zone is known as polarity reversal zones- so in our present case zone of 8650-8655 acted as support & gave B-swing low & now in the current scenario -it is acting as so we come up with below mentioned trading strategies.
So, Likely, If Nifty dips, but remains above 8609 or the trendline passing through 8612 -8615 supports nifty then with strict stops below 8609 which is 8608 -Nifty likely should go in the range of 8715-8725.
Nifty Going Above 8655 & sustaining above 8650 then longs could be built up for target zone 8715-8725
Trailing Stops to cost @8650- safe traders & risk traders to hold with strict stops at 8608. Incase price goes below 8650 then we will see if nifty holds in the zone 8635-8640 for upside targets
Nifty is struggling to cross 8670 -likely it will test the support zones downside
I have never said its a down call or short call to clear confusions- please do understand - I still favor the bull side till 8609 is taken out downside else I will look at every opportunity to buy & most important it is struggling to cross the 8670 mark for a long time so I said pullback could be possible not a short call.
Have you seen a rubber band it is pulled back to shoot higher or reach farthest distance.
The magic of 8670 -Struggling Level as suggested in above update. I will wait to see further price action
Not buying any more -not looking good for bulls at the moment
Market gives sometimes very less time to even think can't help but did my best updating at highs of 8670.
Support trendline do not forget - we need to see whether it holds
Nifty had a sharp fall from 8670 in yesterday's session so bulls need to be careful & can look to buy if the trendline connecting 8612-8615 holds or going above & sustaining 8650 which is psychological level-can also be looked as buying opportunity.
Bears or sellers can look for breach of 8580 -once broken can look downside, but target zones could be 8540 -8500 & 8480- let us wait watch -how it plays out for the day.
Update on 14:31 Hrs -----"Not buying anymore -not looking good for bulls at the moment" at price@8632
I wrote this in a very clear manner- "not buying anymore" at 14:31 Hrs
The market opened gap down- I am still looking for one upside move in the range 8850-8900- otherwise "Nifty--Can this dream turn into reality" update- shall remain incomplete.
Zone of 8480-8500 is a very strong zone- likely can hold the current fall, but still have no confirmation- for which I will wait for markets to give me green signal.
It is moving in sideways manner after opening gap down likely some bit left on downside & possible attempt for 8500-8510 can be expected -post that we will be looking for a bounce in impulsive manner.
Abhishek H. Singh, CMT
Growth Director - TradingView India
YouTube Channel https://www.youtube.com/channel/UCYcnYveYBNLD-Qp54hvZogw