Hi all,
As expected, Nifty plummeted sharply after breaking below the neck line of the Head and Shoulder Pattern. The target for the same as mentioned is almost achieved near 112230-11250.... (Today's low ~11255) in less than 2-3 days....
The next crucial level to watch out for would be the upward gap support between 11160-11230, traders with open short positions can book full / partial profits and trail stop loss above 11360-400....
However, thanks to the intraday pullback by bulls, today's candle looks like a indecisive candle and moreover, on hourly charts, the strong pull back in the last hour of trading can be treated positively to an extent. There is also a positive divergence which would only be triggered above 11360-400.
I personally feel the lows of 11250-11200 would be very strong and should act as supports going forward, so risky bulls can take a low risk opportunity, by taking long positions on dips with stop loss below 11230-11200, still another bullish evidence would be welcome...
One thing to note that, the weekly candle as of now is a strong bearish candle, with no sign of respite for bulls, hence the above mentioned bullish view can just be a pull back and not a complete trend reversal...
Cheers...
Hrishi
As expected, Nifty plummeted sharply after breaking below the neck line of the Head and Shoulder Pattern. The target for the same as mentioned is almost achieved near 112230-11250.... (Today's low ~11255) in less than 2-3 days....
The next crucial level to watch out for would be the upward gap support between 11160-11230, traders with open short positions can book full / partial profits and trail stop loss above 11360-400....
However, thanks to the intraday pullback by bulls, today's candle looks like a indecisive candle and moreover, on hourly charts, the strong pull back in the last hour of trading can be treated positively to an extent. There is also a positive divergence which would only be triggered above 11360-400.
I personally feel the lows of 11250-11200 would be very strong and should act as supports going forward, so risky bulls can take a low risk opportunity, by taking long positions on dips with stop loss below 11230-11200, still another bullish evidence would be welcome...
One thing to note that, the weekly candle as of now is a strong bearish candle, with no sign of respite for bulls, hence the above mentioned bullish view can just be a pull back and not a complete trend reversal...
Cheers...
Hrishi
