NIFTY | Chart Study
Updated
NIFTY is trading in a falling channel as we could observe from the chart. Immediate support lies at 11615. Fibonacci extension (1.618) of previous upswing between 11769.5 and 12000 (as marked in chart) falls at 11626 which more or less comes in at same level.
Technically, even though we could see patterns like Head & Shoulder and Rising Wedge whose targets run well below 11615, there's a very good chance of a bounce from 11615, at least temporarily towards 11770. Hence, from Risk-Reward perspective it is favorable to go long at 11615 levels with tight stops say, a bit below the round number 11600. Shorts that are being carried from higher levels could exit at 11615 and re-enter once 11600 is breached.
If 11600 is broken the index could fall swiftly towards the target of Head & Shoulder and Rising Wedge patterns.
(Note: Charts with Head & Shoulder and Rising wedge patterns and their targets are attached below)
Technically, even though we could see patterns like Head & Shoulder and Rising Wedge whose targets run well below 11615, there's a very good chance of a bounce from 11615, at least temporarily towards 11770. Hence, from Risk-Reward perspective it is favorable to go long at 11615 levels with tight stops say, a bit below the round number 11600. Shorts that are being carried from higher levels could exit at 11615 and re-enter once 11600 is breached.
If 11600 is broken the index could fall swiftly towards the target of Head & Shoulder and Rising Wedge patterns.
(Note: Charts with Head & Shoulder and Rising wedge patterns and their targets are attached below)
Note
Head & ShoulderNote
Rising Wedge
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