In my previous post on the index, I presented a and three levels on the chart.
The first and second levels got hit while the third one has not. It made a low at 10417 right at the level mentioned on the above post. Since then it has been reversing.
What do I expect now?
What I see on the chart is the formation of another pattern right into the downtrend line shown on the chart, which may give me a high risk reward opportunity to short.
The bat PRZ (10870) coincides with an shown in the chart, which has the D point completion at 10855. So I must consider 10855-10870 as a potential reversal zone.
#This analysis will remain valid untill we close above 10930.
But before that, where the index might take support (in the current micro downtrend) to shoot back up for the PRZ? I have come out a of 10650-10680 which may act as a cushion for the markets.
# 10558 should not be violated or else I will have to reassess the scenarios.
OK..assume it hit the support, bounce to hit PRZ and reverse..then what would be the targets on the downside. Well !! that's tricky. As of now I can only say that it could either go for traditional bat targets at 38.2% and levels ( which I can update later) OR it may go for 61.8% target at 10325.
I hope this analysis would help some traders to make better decisions.
Wish you a happy weekend and profitable week ahead.
May be we r nearing top.
Targets for the smaller bearish bat are 10712 and 10600.