A Contracting Triangle & Fib. Retracement relationship multiples
The Nifty 50 unfold the "Contracting Triangle" which is one of three occur 80% in the price chart. One thing is important to remember is that, the wave "((e))" also sub-divide into smaller triangle.
Most common relationship for Fibonacci, the .618 but in this instance we have found the two fib. relationship .618 and .786.
Fib. relationship:
wave ((b)) at 16827 = .786 of wave ((a))
wave ((d)) at 17041 = .786 of wave ((c))
wave ((c)) at 17767 = .618 of wave ((b))
wave ((e)) at 17635 = .786 of wave ((d))
What will be the evident for downside breakout or throw?
1. The extreme wave ((b)) & ((d)) connecting trend-line in downside.
2. A throw - 17,044 breakdown on closing basis is strongest evident for sell-off.
The aggressive trader can take short-side position at or nearby the "Critical Resistance at 17795" which is too far from now. For the fib. relation can perform important role as resistance wave ((e)) at 17635 = .786 of wave ((d)).
