NIFTY 50 I Falling Wedge Pattern + Bulllish Divergence
Nifty 50 Index is currently trading within a very important zone in simple words called area of interest Usually consisting of demand or supply zone. This level has acted as a solid base for the index.
The NIFTY 50 index presents a promising opportunity to initiate long positions at these levels (CMP23,000),Aligning well with the risk reward ratio and making it a favourable entry point for traders looking for Taking advantage of the upcoming trend.
The index has shown a pattern of forming lower highs and lower lows, which indicates a downtrend. However, the Relative Strength Index (RSI) is showing a contrasting pattern of higher highs and higher lows. This divergence between price action and RSI suggests a potential shift in momentum and a possibility of a short covering rally.
Adding to this I see a falling wedge pattern which is a bullish signal suggesting an upward price movement which typically appears in a downtrend and often seen as a bullish Reversal pattern.
The analysis holds true when price close above 23,824 - daily timeframe.
While entering on current levels also has good opportunity of risk reward ratio, I suggest looking for a pin bar candle on today's close will Confirm Market picking support from the levels.
Conversely if nifty 50 index continues to recover, We could see a push towards 24,200 and 24,800 Which represent key Resistance areas. A good breakout above these levels likely signal Continuation of bullish trends in the indian markets.
The NIFTY 50 index presents a promising opportunity to initiate long positions at these levels (CMP23,000),Aligning well with the risk reward ratio and making it a favourable entry point for traders looking for Taking advantage of the upcoming trend.
The index has shown a pattern of forming lower highs and lower lows, which indicates a downtrend. However, the Relative Strength Index (RSI) is showing a contrasting pattern of higher highs and higher lows. This divergence between price action and RSI suggests a potential shift in momentum and a possibility of a short covering rally.
Adding to this I see a falling wedge pattern which is a bullish signal suggesting an upward price movement which typically appears in a downtrend and often seen as a bullish Reversal pattern.
The analysis holds true when price close above 23,824 - daily timeframe.
While entering on current levels also has good opportunity of risk reward ratio, I suggest looking for a pin bar candle on today's close will Confirm Market picking support from the levels.
Conversely if nifty 50 index continues to recover, We could see a push towards 24,200 and 24,800 Which represent key Resistance areas. A good breakout above these levels likely signal Continuation of bullish trends in the indian markets.
Trade active
Inverted H&S Pattern on the 15min TF
Wait for a proper green candle to take Entry 1D-TF
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