Bulls are losing confidence in defending 11000 level. So they are building support at 10800 level. We may see the level of 10766, 200 DMA-- last hope for bulls. Negative Divergence on weekly chart is playing well. Divergences, once trigger cannot be stopped until it completes its course. Weekly charts are reliable.
DISCLAIMER : EDUCATION PURPOSE ONLY.
Range for short term.
Currently@trend line support.
Chances of high volatility this week(Fed, Re movement, Trade news, Expiry).
No positions - Better to watch till market stabilizes r MIN risk.
With Positions - probable support and resistance levels mentioned in chart.
1) The present upside started on 15th Feb 2016 indicated by a Positive Divergence and since then price is moving within an uprising channel.
2) Within this channel, price made 3 tops and 2 dips. Dips were supported by 50 Week MA.
3) On 27th August 18, a Negative Divergence was formed and the same triggered on weekly as well as daily charts. So price is heading...
If your stocks have fallen too much, and your retracement levels shows any kind of support, all you can think of is, when will it stop or when should I re enter. We should look at the monthly chart (considering long term investment).
Check the MACD divergence and a confirmation and you can get in the trade, or increase your position accordingly.
Similarly, If...
Recently 50 DMA offered support to Nifty at least 3 times. Then the main trend resumed. Will the same be repeated now?
a) If 50 DMA fails, 100 DMA is the next low at 11002.
b) There is a Trade Gap at 11183-- next possible support.
