Nifty is forming in a descending parallel channel. Prices are building corrective pullbacks to manage demand pressure and fall from resistance since the start of the correction. Nifty has created a lower low at 15183 and given an upward move of 15927.
Nifty has faced supply pressure on the upper band three times. It indicates that bulls are not exceeding supply pressure and upper band. As bulls give up, bears enter and drive prices to lower levels.
As per my previous article, 16200 is strong resistance for bulls and the supply zone of the parallel channel. If the price sustains below 16200, traders can expect the following targets: 15740 – 15326 – 14870. We can expect a fake-out of the parallel channel.
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