Nifty - Rangebound movement between 17300-17700 in next few days
Nifty Index generally tries to correct by trending and then consolidating for a while and then resuming its bearish momentum.
One can see that in Dec and Jan, Nifty corrected from 18700 to 17800 and then formed a consolidation zone between 17800 to 18200. This was the Fib retracement area betweeen 38.2% to 50% levels.
In the last few days Nifty has corrected considerably and has started forming a base at 17300. If it has to resume its downward trend it can be expected that Nifty will try to form a consolidation zone between 17300 to 17700 which is the 50% retracement area. Size of the consolidation has to be seen as it can retrace upto 61.8% area as well.
As always the size of the consolidation might differ based on where price gets rejected but strangle trades should work quite well for this or next expiry.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
One can see that in Dec and Jan, Nifty corrected from 18700 to 17800 and then formed a consolidation zone between 17800 to 18200. This was the Fib retracement area betweeen 38.2% to 50% levels.
In the last few days Nifty has corrected considerably and has started forming a base at 17300. If it has to resume its downward trend it can be expected that Nifty will try to form a consolidation zone between 17300 to 17700 which is the 50% retracement area. Size of the consolidation has to be seen as it can retrace upto 61.8% area as well.
As always the size of the consolidation might differ based on where price gets rejected but strangle trades should work quite well for this or next expiry.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Disclaimer
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