Nifty 50 entering in supply zoneCertainly! Here’s a more detailed version of your statement, explaining the analysis and rationale behind the trade setup:
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As the market approaches a significant **supply zone**, identified from previous price action over the past few weeks, this area may act as a strong resistance level. A **supply zone** is typically a price range where there has been considerable selling pressure in the past, causing the price to reverse or experience temporary resistance. Traders often monitor these zones for potential reversal signals, as the market may struggle to break through due to sellers entering the market.
In this scenario, if a **weak candle** formation appears upon reaching this supply zone—such as a small-bodied candle with long wicks or a clear rejection pattern—it could indicate a reduction in buying momentum and an increase in selling pressure. This candle formation suggests that buyers may be struggling to maintain control, while sellers could be gaining strength. Weak candles in a supply zone are often viewed as early signs of a potential reversal or pullback.
Under these conditions, traders may consider taking a **short position**, targeting a move of **100-150 points** to the downside. This trade setup is based on the expectation that the supply zone will act as resistance and could lead to a temporary price decline. However, it’s crucial to monitor the trade carefully and manage risk, as price action near key levels can sometimes be volatile or unpredictable.
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**Disclaimer**: This information is intended for **educational purposes only** and should not be considered as financial or investment advice. Always conduct thorough research and consult with a professional before making any trading or investment decisions.
