NIfty in the last few weeks has gone from 16800 to ATH 18900. The move was swift and without any retracement hence in the last couple of weeks Nifty has retraced to the 50% area which is 17800 of the current upmove from 16747 to 18887.
Post that NIfty then tried to move up but faced resistance at 18200 and has slid back below the level of 18000 but ended the day close to it. Today would seem to be an important day as any closing below 17800 on a weekly basis would embolden sellers to massively short Nifty as it would confirm a LH and LL pattern as shown in the chart.
But a close above 17800 and near about 17900-18000 region could also signal a W pattern with a higher low with the caveat of it needs to cross the recent Swing high of 18250. It can turn bearish next week as well if it crosses 17800 again and confirms the LH LL pattern.
Potentially, today might be a sideways day if it opens between 17900-18000. It will find support at 100 day MA & EMA which is at 17900 and 18000 being heavily defended by sellers. A gap up above 18k might signal small bullish gains while gap down below 17900 will tilt towards bearish.
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Post that NIfty then tried to move up but faced resistance at 18200 and has slid back below the level of 18000 but ended the day close to it. Today would seem to be an important day as any closing below 17800 on a weekly basis would embolden sellers to massively short Nifty as it would confirm a LH and LL pattern as shown in the chart.
But a close above 17800 and near about 17900-18000 region could also signal a W pattern with a higher low with the caveat of it needs to cross the recent Swing high of 18250. It can turn bearish next week as well if it crosses 17800 again and confirms the LH LL pattern.
Potentially, today might be a sideways day if it opens between 17900-18000. It will find support at 100 day MA & EMA which is at 17900 and 18000 being heavily defended by sellers. A gap up above 18k might signal small bullish gains while gap down below 17900 will tilt towards bearish.
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.