I will confirm a running triangle if Nifty spends some more time tomorrow between highs@8727 & lows@8650 without breaking either side- that is what a triangle always does to consume time & trap traders on both fronts.
Running Triangle is the scenario is a wild guess which will be confirmed in coming sessions -if above criteria are satisfied.
Triangle always have 5 internal legs, but the difference between running triangle & normal triangle is b-wave. b- wave of the running triangle will always go beyond the origin of a-wave start -in our case a-wave of triangle started at 8699 highs & b-wave travelled till 8727.
All waves overlap from highs@8968
Look for the zone 8540-8550
Struggling between 8550-8600
Bang On Target -8500
Magical Setup of 88
Can you recognize the path?
ABC or 123 Move- Same Result-Upside
Going above 8727- pattern gets invalidated & above 8730 -looks bullish. But traders could really take short term sell as one had a risk of 4-5 points. Session high was 8723 & our key resistance level was 8727 as suggested earlier. Downside -it should not break 8750 -keep moving in between the range to give us confidence in the pattern suggested. Let us wait & watch the market drama.
Downside it should not break 8650 -typing error above
Vow -This first fall from close to 8727 keeps the hope alive that is some kind of triangular pattern.
Keep a note as stated above -Nifty should not go below 8650 -key support & taking buying opportunity close to that level shall be advisable. Make sure it should not travel below 8650 Then going above 8727-8730 -It will move up.
As expected, nifty is spending time in the zone, so likely if we see nifty travelling in the zone 8660-8670 that will be a good buying zone, but as suggested it should not break 8650 - if it breaks, then we have 8630 as another level- which I will be interested to see as support for any future buying opportunity.
Going below 8630 -we will avoid taking any long positions.
Abhishek H. Singh, CMT
Growth Director - TradingView India
YouTube Channel https://www.youtube.com/channel/UCYcnYveYBNLD-Qp54hvZogw