Seeing a possible short on Nifty 50 below 10228-10200.
It is trading in the rising wedge chart pattern. Weekly candle top is 10550 where 0.618 FIB form swing high (12400), Daily EMA 200 and Horizontal Resistance levels are trying to contain the uptrend move. If it has to go up, it must break and close above 10550 with strong volume. In that case, we can see possible 300-500 points upwards, It is possible and markets can do that but probability vise, the even in which market break 10550 and makes a new swing high is of low probability.
The path of least resistance seems to be downwards. RSI angle/slope is becoming sluggish so Nifty is in an uptrend but it is losing the strength of the uptrend.
It is also forming XABCD with a 0.618 possible reversal zone. We know 0.618 is a golden retracement zone and any index or stock resumes its trend from the golden FIB zone.
Possible setup
(1) Long above 10550 with SL 10400 for a possible target of 10800 and 11000. (Possible but less probable)
(2) Short below 10220 with SL 10400 for a possible target of 9950 and if that is broken, another target of 9550-9650. (Path of least resistance and highly probable)
PS; Educational idea only.
It is trading in the rising wedge chart pattern. Weekly candle top is 10550 where 0.618 FIB form swing high (12400), Daily EMA 200 and Horizontal Resistance levels are trying to contain the uptrend move. If it has to go up, it must break and close above 10550 with strong volume. In that case, we can see possible 300-500 points upwards, It is possible and markets can do that but probability vise, the even in which market break 10550 and makes a new swing high is of low probability.
The path of least resistance seems to be downwards. RSI angle/slope is becoming sluggish so Nifty is in an uptrend but it is losing the strength of the uptrend.
It is also forming XABCD with a 0.618 possible reversal zone. We know 0.618 is a golden retracement zone and any index or stock resumes its trend from the golden FIB zone.
Possible setup
(1) Long above 10550 with SL 10400 for a possible target of 10800 and 11000. (Possible but less probable)
(2) Short below 10220 with SL 10400 for a possible target of 9950 and if that is broken, another target of 9550-9650. (Path of least resistance and highly probable)
PS; Educational idea only.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.