A perfect needed nearly 6 months gap and Nifty exactly done that. A indicate implications.
Moreover the weekly chart and the high premium points to some cooling off.
As detailed in last post NS made the first point : Lower low indicating weakness.
2nd point was it has to give 2 closes below 5 in heikinashi candle, one already made and second with a just below it.
We can also see the signals are on the verge of a cross over and expected this to happen by Monday or Tuesday.
In this chart plotted the 5 and 9 . The first support can be the 9 and once the 5 breaks the 9 the
momentum of fall can accelerate. Also plotted the chart with the Fibo fan with the levels of in relation to time. The whole chart can be seen by reducing the size by using the cursor.
These are the views for the next week and all the shorts are with SL of 11768.
It is also observed the behaviour of that as the signals are above the 0 line, the histograms can open below 0 simultaneously with the the signal cross over and with 4-5 candles below 0 it can complete the fall. Once the histogram candles started becoming smaller below 0 the fall can weaken and the Nifty can start bouncing back for the next wave up. Signals are expected to take a U turn and c/o above the 0 line for the next up move wave.
The above view is purely educational and it may or may not happen and not a suggestion to take any trade. Anybody taking trade is requested to consult with his/her financial advisor before doing so as the writer or this website will not be responsible for any such actions