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Reversalzone

Nifty: Correction ProjectionThere were two important points which I mentioned in my earlier longer term views on Nifty >> 1) I said that there are good chances that market could reverse from 10036. Why I said that? See the following post >>>> Market extended a little further upto 10137 and everybody knows what happened next. 2) Second point was related to corrections. Market loves 50% retracement level and respected it at many junctures. See the following post >>>> I am expecting same if this correction continues from here (9710). --------------------------------------------------------------------------------------------------------------------------------- I hope everyone agrees at one point that market is correcting. A very obvious question that comes to mind is that HOW FAR IT CAN CORRECT? Another question that comes to my mind is that through which possible route/path. Possible halts, strong supports which can offer pullbacks and possible reversal points are also very important to be discussed. I am limiting this discussion to 2 possible bearish only scenarios. Plz. remember that I am not trying to predict anything and the following analysis is purely based on numbers. Scenario 1) Market pulls back from the current 9710 level. In this case 9840 will be a possible level which may provide sufficient supply to push the index down to 9685 again. 1(a) Market halts near 9685: Market halts, forms a type of bottom and gradually moves up along the trendline (shown in chart) for a few days to taste the CAUTION ZONE (9873-9975). A strong reversal can be expected from this level towards 9700 and then to 9600. # At 9600 one has to be cautious on bear side until confirmed continuation starts below this level. Because there is some probability that this corrective wave ends near 9600 and market continues its long term uptrend. # If the downtrend is confirmed below 9600, then I would say 9015/9025 are quite possible. And that coincides with the 50% retracement (from 7894 to 10137) we were talking about. 1(b) Market doesn't stops near 9685 and corrects further near 9600. The end of this down wave may be followed by a weaker pullback which may push the price to 9700-9800 zone. Strong reversal can be expected at the end of the pullback which may continue till 9015. Scenario (2) Market does not pulls back from 9710 and slams down to 9600 In this case any pullback to 9700 should be taken as a selling opportunity to target 9600 or lower. Here too I expect a larger and weaker pullback at the end of this downwave which could last for a few days. The rally may end in 9700 and 9850 zone before the downtrend continues towards 9015. Important points 1) Break below the (green) trendline shown in the chart would confirm the downtrend 2) In both the above scenarios, at the end of the current down wave, a larger and weaker pullback is expected which could last for a few days. The extent has been discussed above 3) A strong case for reversal has been put near the 9000 level. Trade safe Hit like if this information is useful Happy weekend Regards Bravetotrade
NSE:NIFTY
by Bravetotrade
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