Hi In my previous post on the index, I presented a bearish cypher 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 50% retracement 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 bearish bat 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 ABCD pattern 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 support zone 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 61.8% retracement levels ( which I can update later) OR it may go for 61.8% Cypher target at 10325.
I hope this analysis would help some traders to make better decisions. Wish you a happy weekend and profitable week ahead.
Regards
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Nifty held exactly at the lower end of our support zone, lets see where it can take us.
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Mkt at a critical level -- 10638.
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A rising wedge into the resistance zone. May be we r nearing top.
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Price is respecting the wedge, shown yesterday, but it could not sustain inside it for long.
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Nifty broke the wedge pattern yesterday. It was a wedge with in the broader Bat spectrum. Expecting more downside. Let's see how we proceed.
Targets for the smaller bearish bat are 10712 and 10600.
@Parasuram, Break down straight away and not sideways before breakdown.
Parasuram
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@Bravetotrade, ok! break down is a better word.. Break away is after a range is formed..but its been difficult trading Nifty.. I had put stop above the gap area and riding.. Let us see.. My targets are 10580 and if the fall extends 10380..
@Bravetotrade, Market is proving me wrong! surrendered all the profit...
Bravetotrade
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@Parasuram, :) that's the market and that's how it works. Fridays are just like that. Perhaps it does not want to go one way down. It would dance. May be it fills the gap on upside, who knows. For intraday it's good to book small profit than a loss. For swing trades SL should be higher at important levels, 100 points is no big deal if trading nifty.
AritraLaha
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Come On Bat! Keep the patience high..One more plunge..That's it..