Support and Resistance is one of the most used techniques in technical analysis based on a concept that's easy to understand but difficult to master. It identifies price levels where historically the price reacted either by reversing or at least by slowing down and prior price behavior at these levels can leave clues for future price behavior. There are many different ways to identify these levels and to apply them in trading. Support and Resistance levels can be identifiable turning points, areas of congestion or psychological levels (round numbers that traders attach significance to). The higher the timeframe, the more relevant the levels become.
Finding the most important ones can take many hours of practice. They exist due to an influx of buyers or sellers at key junctures. The fact that these levels flip roles between support and resistance can be used to determine the range of a market, trade reversals, bounces or breakouts. Each of these trades will have their own rules for entry and exit. TradingView has a smart drawing tool that allows users to visually identify these levels on a chart.
Price action will move sideways unless it breaks 10780 - 10800 level for upside movement or 10620 for downside movement. Another support is seen at 10560 - 10580 level also.
Nifty Daily chart is telling price range 10950 - 10650 since last 2 months. It has touched the lowest boundary but closed above the 78.6 Fib level. It seems that buyers have emerged from that level and found it cheap. Price have bounced from the ML of the PF( I would not give much weight-age to it as it has not shown much harmony with it). Hourly chart Heiken Ashi...
After sell off nifty might bounce back
Long between 10639 to current level with stop loss around 10570 level 50% fibo level from recent high
And Trail for Targets 10815, 10883 possibly.
Below 10570 might try for lower level.
Use stop loss
Interesting chart pattern formation on daily and hourly chart .
It might be a possible formation of S-H-S ( Head and Shoulder pattern)
If it happens reliance may fall back to 1177
Strategy-1
Long at current level with stop loss at recent low of 1216
With target @ 1256, 1268/72 and extended 1281
1272 to 1280 might be possible resistance and could reverse if S-H-S...
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