The rounding bottom or saucer bottom is a long term reversal pattern which indicates a shift from the downtrend to an uptrend. This pattern forming in the weekly chart indicates this script is turning from bearish to bullish. When buyers enter the market at a low price, it increases the demand for the stock. Once the rounding bottom is complete, the stock breaks...
Right now Nifty does not posses any positive or negative strength. I can be clearly seen nifty failed to create new bullish price cycle after bullish divergence of last day.
Wait for prices to either confirm downside by breaking support with shift in volatility or bounce.
Nifty confirmed triangle break with first 15 minute of opening. I think short can be initiated for minimum downside of 8385. Prices are currently retracing to broken line take entry at the end of retrace.
Bearish divergence is formed on Nifty 15 minute, if support breaks with shift in volatility, downside will begin. Go short when resistance break gets confirmed.
Market opened with another shift in price, since all momentum indicators are oversold, this upside is not a strong upside and have high chances of failure, if you are holding a long position start trailing SL properly to protect your profits.
Regards,
Nrupen
www.udemy.com
Honestly this upside was unexpected but it happened with shift in price volatility and upper resistance break. Keeping that in mind I think Nifty might hit minimum target of at least 8290-8300, but also keep in mind current upside is weak so make sure to maintain a good Trailing SL if you have already taken a buy position.
After a breakout from a upward trending channel, it seems there is a correction shift in the price action. From the current breakout levels it is measured that the price action will go towards the next support levels. It is good time to short with Target:508-504 Stoploss 528
