The previous week’s closing price was strong enough to let traders think about a bull market, But is it the right time to be a bull trader?
As you can see in the chart, we are getting some price levels very often, such as 15800, 16800 & 17600. It is the perfect example of the assumption of technical analysis, “History tends to repeat itself.”
Nifty has given eight touches at 16800, nine touches at 16600, and finally five touches at 15800.
Currently, the price is marching towards 16800, which is the resistance for now to the nifty.
If you notice like a hawk, there will be a conclusion that prices have reached 17600 after the breakout of 16800.
Let’s analyze and gather some clues from the lower time frame charts, but don’t forget to keep the bigger picture in mind.
After analyzing the weekly chart, we have noted our levels. But prices don’t exactly fall from these levels. Indeed, 1 – 2% penetration is acceptable on the resistance.
There are 3 price confluences zones for nifty:
1) The price is marching for the upper band of the parallel channel at 16931.
2) 16989 is 61.8% Fibonacci retracement of the previous move.
3) Price has broken out 200 EMA.
The parallel channel is valid with 8 lower band touches, 14 control line touches, finally 3 upper and touched. Please note that, sellers are strong at the upper band of the parallel channel.
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