Textbook Price Action - Nifty iT
Hey fellow traders and chart enthusiasts, Here’s a fresh breakdown of the Nifty IT Index, which is currently at a make or break zone after a significant correction of almost 30%.
So we can see the index recently broke a strong demand zone 33400 to 32400 which I marked now as a resistance and this breakdown came with strong bearish momentum which shouldn't be ignored and after we are seeing a classic example where price is testing a resistance zone which earlier was a support zone.
Let's zoom what daily chart say ? So please check the inserted snapshot in inset where we are seeing a tight consolidation just below the resistance zone where price is hesitating and a small bullish bounce is underway but there is no follow through so far.
Levels to watch-:
Resistance zone- 32400 To 33400.
Support zone- 27500 to 26500.
Invalidation for Bears- Weekly and daily close above 33400.
So basically i prepare two trading scenes sharing below.
Bearish Continuation-:
Failure to reclaim resistance after this or next rejection will likely lead to another leg down, possibly testing the next support area near 27500 to 26500.
Bullish reclaim-:
If buyers push the price back above 33400 with bullish strength and conviction, we may see a relief rally toward 36000 and beyond and that would invalidate the current bearish structure for some time.
This Publication is meant for only learning purpose.
Hope you like the idea, thanks in advance for your coming support.
