1) According to Dow Theory, unless Nifty make a lower high and violates the prior higher low (9,700), bull trend is still intact.
Lets study the current signs in more detail,
--> Violated the short term uptrend support line
--> Double top formation
--> Negative divergence on RSI
--> Retested the upper end of the long term rising channel
According to Fibonacci Retracement,
--> 0.78% falls near 9,700 which is also the next support level.
--> 0.50% falls near 9,000 which is major support level and also might be the lower end of the rising channel.
Conclusion,
--> Major trend is still intact although current signals are bearish for short term
--> Next levels of support are 9,700 and then 9,000
--> Please correct me if I am wrong, would love to learn. Happy trading :)
Lets study the current signs in more detail,
--> Violated the short term uptrend support line
--> Double top formation
--> Negative divergence on RSI
--> Retested the upper end of the long term rising channel
According to Fibonacci Retracement,
--> 0.78% falls near 9,700 which is also the next support level.
--> 0.50% falls near 9,000 which is major support level and also might be the lower end of the rising channel.
Conclusion,
--> Major trend is still intact although current signals are bearish for short term
--> Next levels of support are 9,700 and then 9,000
--> Please correct me if I am wrong, would love to learn. Happy trading :)