Nifty 50: Key Support & Resistance Levels with Trendline Setup
Key Observations:
Support Levels:
Strong Support at 23,537.35: This level has been tested, showing a bounce, indicating a solid demand zone.
Secondary Support at 23,605.70: This area is holding minor corrections, reinforcing it as a critical level.
Resistance Levels:
Immediate Resistance at 23,951.70: Price has failed to breach this level, making it a crucial selling zone.
Major Resistance at 24,066.05: This is the upper boundary where significant selling pressure may occur.
Trendlines:
The yellow trendline indicates a long-term uptrend, showing that the broader market sentiment remains bullish.
The recent bounce off this trendline suggests potential upward momentum.
Indicators:
RSI (14): At 39.60, it's near the oversold zone, hinting at a potential reversal to the upside.
The RSI-based moving average also aligns with bullish divergence.
Trading Strategy:
Buy Zone:
Look for entries near 23,605.70 or 23,537.35 with a stop-loss just below 23,500.
Target levels: 23,813.40, 23,951.70, and potentially 24,066.05.
Sell Zone:
Consider selling near 23,951.70 or 24,066.05 if price shows rejection candles or a bearish RSI divergence.
Target levels: 23,680 and 23,605.70.
Breakout Opportunity:
A breakout above 24,066.05 could signal a rally to higher levels. Watch for increased volume and RSI confirmation for entries.
Support Levels:
Strong Support at 23,537.35: This level has been tested, showing a bounce, indicating a solid demand zone.
Secondary Support at 23,605.70: This area is holding minor corrections, reinforcing it as a critical level.
Resistance Levels:
Immediate Resistance at 23,951.70: Price has failed to breach this level, making it a crucial selling zone.
Major Resistance at 24,066.05: This is the upper boundary where significant selling pressure may occur.
Trendlines:
The yellow trendline indicates a long-term uptrend, showing that the broader market sentiment remains bullish.
The recent bounce off this trendline suggests potential upward momentum.
Indicators:
RSI (14): At 39.60, it's near the oversold zone, hinting at a potential reversal to the upside.
The RSI-based moving average also aligns with bullish divergence.
Trading Strategy:
Buy Zone:
Look for entries near 23,605.70 or 23,537.35 with a stop-loss just below 23,500.
Target levels: 23,813.40, 23,951.70, and potentially 24,066.05.
Sell Zone:
Consider selling near 23,951.70 or 24,066.05 if price shows rejection candles or a bearish RSI divergence.
Target levels: 23,680 and 23,605.70.
Breakout Opportunity:
A breakout above 24,066.05 could signal a rally to higher levels. Watch for increased volume and RSI confirmation for entries.
Disclaimer
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