NML ON BASES OF DEMAND AND SUPPLY To analyze the chart using demand and supply concepts, we can look at the following points:
Supply Zones:
The upper supply zone appears around the 81.56 to 86.00 range. This is where selling pressure is expected, as prices reached this level multiple times but failed to break through, indicating a strong selling sentiment.
Demand Zones:
The demand zone is evident between 70.00 and 75.52. Price retraced to this area and showed signs of buying pressure, as indicated by the upward movement when it tested these levels.
Recent Price Action:
The current price is at 77.06, which sits right above the demand zone. If it holds here and pushes upwards, it could indicate a continuation toward the supply zone.
If it breaks below 75.52, there could be further downside potential towards the next demand level.
Volume Analysis:
It's crucial to observe volume spikes. Increases in volume accompanying price movements can validate the strength of a breakout or reversal in these zones.
Conclusion:
Watch for price action around the identified zones. A strong move above the upper supply or a rejection from it could signal future trading decisions. Similarly, maintain attention on the demand zone for potential reversals or breakdowns.
Adjust strategies based on how price reacts to these key levels!
