Seems like NIFTY is making either triangle or diametric pattern.
So far we are in wave D of triangle or diametric pattern and we have seen range getting squeezed in each leg(a typical symmetrical triangle characteristics).
Going ahead we can see wave E unfolding on the the upside post which we can finalize if the pattern is triangle or diametric depending upon wave E's magnitude.
Ideally for Symmetrical Triangle wave B low's of 16833 should be breached in this on going fall.On the upside if price crosses 17400 and gives close above it,then it would confirm end of wave D.
On 25th Jan we did show nifty bouncing from 16836 low's and hence that low can act as a stop-loss for long's.As today we have seen gap down one should wait for hourly close above today's high for initiating long position which is coming at 17073.This is for digressive traders.
For safe bet,one should wait for 17400 to broken on the upside.
Risk-reward is only 1:1.4 but if index manages to cross 17400 then it can move up till 18000 levels,which would then improve RR ratio,hence sizing at should be done accordingly.
View negated if 16833 is broken.
Disclaimer:This are just my views on nifty no position should be build or exited on its basis.
So far we are in wave D of triangle or diametric pattern and we have seen range getting squeezed in each leg(a typical symmetrical triangle characteristics).
Going ahead we can see wave E unfolding on the the upside post which we can finalize if the pattern is triangle or diametric depending upon wave E's magnitude.
Ideally for Symmetrical Triangle wave B low's of 16833 should be breached in this on going fall.On the upside if price crosses 17400 and gives close above it,then it would confirm end of wave D.
On 25th Jan we did show nifty bouncing from 16836 low's and hence that low can act as a stop-loss for long's.As today we have seen gap down one should wait for hourly close above today's high for initiating long position which is coming at 17073.This is for digressive traders.
For safe bet,one should wait for 17400 to broken on the upside.
Risk-reward is only 1:1.4 but if index manages to cross 17400 then it can move up till 18000 levels,which would then improve RR ratio,hence sizing at should be done accordingly.
View negated if 16833 is broken.
Disclaimer:This are just my views on nifty no position should be build or exited on its basis.
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