Reasons/Traits : • Recent completion of Bearish Bat harmonic pattern, after this pattern, usually trend will be down • Flag pattern is seen, a break out or break down can happen as 3 times up and down side of the channel is touched and not broken • Currently 1350 support taken, where 5 EMA is crossing 20 EMA and 200 EMA from bottom (currently all 3 at same place) • 1350 is important support zone • Current close of 1382 is above 0.236 Fibonacci level, indicating price can go up and touch flag pattern up channel • Recent uptrend retracement tested 0.5 levels of Fibonacci and price went up • RSI, MACD are at median, waiting for next up or down move
What can happen next : Scenario 1 : An upside break out of flag pattern can take price to 1465/1500/1580 levels to complete retracement Scenario 2 : A downside break of 200 EMA can lead to the testing of flag pattern support and if broken, then price can go to 1218/1092/988 levels. Breaking of 1218 levels can quickly take to 1092 levels and it acts as important support level as per harmonic pattern
1350 is an important level, let’s see..
Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
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Scenario 1 activated, target 1 achieved and heading for target 2
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Scenario 1 activated, first and second targets achieved
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High 1632 today, all levels completed as per Scenario 1