Nifty MTF analysis
Updated
Nifty on monthly timeframe is travelling in this channel and after three months of correction since it made ATH in Dec 2022, last monthly it made a doji and potentially by April closing it make a Morning star formation which is currently under progress.
On weekly timeframe, Nifty has given one of the sharpest rally in recent history and the price pattern which it has formed is three while soldiers.
"The three white soldiers candlestick pattern suggests a strong change in market sentiment in terms of the stock, commodity or pair making up the price action on the chart. When a candle is closing with small or no shadows, it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and close near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a doji."
On weekly charts, as indicated earlier in my previous analysis of Nifty Pitchfork view
, Nifty took support exactly at the lower band of the pitchfork support and is now potentially heading towards 50% line in pitchfork
In terms of Fibo, Nifty has completed 50% reversal of the correction from ATH to 16828 levels and if price start sustaining above 50% fibo level (roughly around 16858) or as a round number 16900, then possibility of Nifty touching the next Fibo level around 18100 can't be ruled out even before giving significant pullback
In terms of Bands, Nifty in recent history broke down of 20 weekly MA (band median) in April 2022 and then has gone under consolidation below it for 12 weeks before giving a fresh breakout of 20 Weekly MA in July 22 and then went on to make a new high. This time Nifty brokedown 20Weekly MA in Jan'22 and then after 10 weeks of consolidation below it, it has again given a fresh breakout of 20 weekly MA
On daily charts, as previously indicated at the channel bottom that divergence was visible.
Price rallied from there and has already given a breakout of the channel and now RSI is above 60 on daily charts, with price giving a breakout of key resistance level of 17800.
Also, from AVWAP point of view, Nifty on daily chart was facing hurdle at avwap levels from ATH and on previous three instances in Dec, Jan, Feb it got rejected / gave fake BO there. This time price has closed above avwap from ATH level on two consecutive days, if price continues to sustain above it then chances or more positional shorts have to cover their shorts.
On 4 hourly chart, as indicated Nifty made a diamond pattern base and broke out of it and the last 4 hourly candle is a bullish engulfing candle
Also, considering that the last two weeks move was a impulse wave and is already 261% extn of wave 1, so if any correction comes here in terms of wave 4 - so possibility of 38 to 50% retracement of wave 2 can't be ruled out - however for now there isn't any signal of such correction on charts and Monday's session can be a interesting one considering some of the key results will have to be factored in.
Happy Trading.
On weekly timeframe, Nifty has given one of the sharpest rally in recent history and the price pattern which it has formed is three while soldiers.
"The three white soldiers candlestick pattern suggests a strong change in market sentiment in terms of the stock, commodity or pair making up the price action on the chart. When a candle is closing with small or no shadows, it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and close near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a doji."
On weekly charts, as indicated earlier in my previous analysis of Nifty Pitchfork view
In terms of Fibo, Nifty has completed 50% reversal of the correction from ATH to 16828 levels and if price start sustaining above 50% fibo level (roughly around 16858) or as a round number 16900, then possibility of Nifty touching the next Fibo level around 18100 can't be ruled out even before giving significant pullback
In terms of Bands, Nifty in recent history broke down of 20 weekly MA (band median) in April 2022 and then has gone under consolidation below it for 12 weeks before giving a fresh breakout of 20 Weekly MA in July 22 and then went on to make a new high. This time Nifty brokedown 20Weekly MA in Jan'22 and then after 10 weeks of consolidation below it, it has again given a fresh breakout of 20 weekly MA
On daily charts, as previously indicated at the channel bottom that divergence was visible.
Price rallied from there and has already given a breakout of the channel and now RSI is above 60 on daily charts, with price giving a breakout of key resistance level of 17800.
Also, from AVWAP point of view, Nifty on daily chart was facing hurdle at avwap levels from ATH and on previous three instances in Dec, Jan, Feb it got rejected / gave fake BO there. This time price has closed above avwap from ATH level on two consecutive days, if price continues to sustain above it then chances or more positional shorts have to cover their shorts.
On 4 hourly chart, as indicated Nifty made a diamond pattern base and broke out of it and the last 4 hourly candle is a bullish engulfing candle
Also, considering that the last two weeks move was a impulse wave and is already 261% extn of wave 1, so if any correction comes here in terms of wave 4 - so possibility of 38 to 50% retracement of wave 2 can't be ruled out - however for now there isn't any signal of such correction on charts and Monday's session can be a interesting one considering some of the key results will have to be factored in.
Happy Trading.
Note
Nifty 4 hourly chart update Looks like possibility of wave 4 has completed with a falling wedge type of pattern formation and taking support around fibo zones marked, A breakout is possible on upside now
Note
Nifty as expected did well :) Note
Note
Note
Super
Note
Nifty completed Monthly Morning star, as predicted :)Note
Nifty never broke this channel and see how it worked out so far 
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.