CL has made a spike low near crucial Long term levels of 51.90. Here is a potential contrarian trade set up with 3x win opportunity , plan being this low should hold for the pullback to be valid, else we should look for a test and break of 51.90 areas
Banknifty is continuing to balance within the upper range of the election weeks profile range ( 31650-31380 Futures levels ). A break on downside can see a test of 31100 and 30800 on the downside. the fact that we traded two consecutive days within a narrow Value area spread means changes of a break for the expiry is highly possible.
alternatively an outside break...
NIFTY has seen a v shaped reversal from a previous top reference point, Key support band is now at 11550-650. should hold that for this rally to sustain.
two potential trade areas: 1. a break above 11760 zones and a hold there for a push to the elusive 12k mark and higher.
2. a break below 11550 for a reversal and retracement back into the rally including the gap...
Both SP500 and NIFTY have displayed a similar pattern in the past 1 year and now both are at the edge of the previous tops. combine this with the fact that VIX is at near lows, we are all set for potential volatility in the weeks ahead.
NIFTY has test a crucial near term reference zones, if it manages to build value lower and consolidate we can break through this zones, else these areas a potential reversal points. potentially earnings will lead the way
#banknifty looking at the monthly profile ( this is from futures charts) gives a good perspective of what is playing out, we are consolidating between last mnths VAH n VPOC.until we clear 30650 or 29800 the play is to trade pullbacks in this range, a break outside this range will likely give a 800-1000 pt move
Crude is nearing a very important zone here, Looking at last year's profile, we are appearing near a crucial low volume node ( marked in red zone).we should
1. either have a breakthrough the zone, then we are looking for a serious uptrend here or
2. look for a failure and a reversal from this area back into this years volume areas.
NIFTY - this is a good zone to look for some potential rotation or consolidation. will be prepared for the following scenarios. At this point we are hitting a red zone which has seen a bit of hold way back.. need to watch if that is respected.
On the downside.. the green zone which acted as a multi month consolidation should serve as a strong buffer for any pullbacks
NIFTY has been trading sideways on a larger timeframe, since we had broken down the longer term swing trendline.
From an immediate trading point the key inflection points are marked. have marked the zones. will follow through on this.
preference is to look for a downside break and a re test of 10680s once we manage to break outside the minor consolidation zone...
From a larger time frame context looking keenly at these 2 zones in the markets. Idea is we ride the trend on the upside as market evolves but be prepared for a failure at the upper zone for a potential reversal or a break out above that for another leg of move.
On the downside a break below the support areas, will lead to a potential correction and rotation back...
BNF: Not quite the directional clarity as we get into this session, probably today shd confirm it on either side. I'm looking for these primary zones
1. RE @ 27430-50 areas, trading above that a potential test of 27550 zones.Hold abv that 27680 is on.
2.swing RE @ 27550 areas, look for a short set up there.
3.Hold below 27250- rotation bk to 27100-130 areas
Sort of proved wrong in the last contrarian set up, but here we are not approaching the strong resistance zones of 2600-2630.. and unlikely to clear that easily. this could present some good contrarian ideas shortly.