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)).
Relationship
Nifty...buy the dips!!!View in nifty:
Any intraday dips can be bought till 11730 for tomorrow!!!
Too many news in the market as of now, both domestic and international. So, play with appropriate stops.
CPR relation is strong in all the big time frames so let us hope it is a nice chance to grab the dips at least till the first week of next contract.
Next month opening and 2-day relation are very crucial now for Nifty to make all-time highs till December.
Ping me to learn the 7 types of 2 days relations.
Play safe.