5 Week Rate of Change5 Week Rate of Change turned up.
Turned above zero line on week ended 22/06/2023
Since then it is above the zero line.
In the supply zone created by the earlier peak of 19031.
The supply zone is 19031-18557.
For last 4 weeks, SGX NIFTY in the supply zone.
Support of 18500 critical.
A fall and close below 18500 with bearish candle
can lead to retracement/correction of the rise 16899
to 18975.
Retracement levels as shown in the chart will come into
contention once breakodwn and close below 18490 is
witnessed.
Subsequently retracement of 18186-17939-17693 to be tested.
Rate of Change of 5 weeks can turn down as it is falling.
Breakdown below 18490 can lead to Rate of Change of 5 weeks
to move below zero confirming the near term to short term
correction/retracement.
As long as it is above 18490, volatility/sideways corrective
behaviour can be witnessed.
Essentially a breakout and close above 19031
with bullish candle will help the market to extend
the long term up.
Volatility and correction are intermdiate to short term.
Some time can extend to medium term.
It would depend on how traders perceive
the respective time frames and the defination
of the same.
