NIFTY - Contraction Burst (Weekly View)After A sharp up move from 15200 zone index gave almost 24% rally from bottom. After a trendy move index has declined 5% from top- 18800+. It has been trading in range since last 3 weeks; almost a month. The range is 18270 and 17760. This range has been formed in weekly TF. Looking at the weekly candles we can clearly sense that contraction has happened for a month. Contraction burst is likely to happen in the coming week on this range breakout.
Now lets look at the target projections on each case.
If range breaks downside below 17760 then we will test 16700 in between 17165 will be short term base/support.
Weekly TF
Daily TF
Now if range breaks upside above 18270 the we will test 18900. Then if 18900 is sustained then there will breakout in monthly TF and we will test 19661 and 20000.
Weekly TF
Daily TF
After breakout previous swing low/high in daily TF will be sl either side.
