Power of Fibonacci levels

The above chart is self-explanatory of Fibonacci levels and its importance, whether as resistance or support.

The crucial fibo levels used considered as important for either extension or retracement are 0.382, 0.618 and 1.618. The above chart is of Nifty extension levels. We could see how each levels acted as resistance and later the same became support. In above chart, 0.786, 1.414 and 1.618 levels acted as major resistance and took some time to break them. Once these levels were surpassed, they became support for the next leg of rally. Also, we can see the power and importance of 1.618 level, where Nifty almost consolidated 2 months around this level and then surpassed that level.

Currently Nifty is consolidating at around 2.0 level (17351). Next leg of rally may get resumed once it consolidates at this level. Next key levels as mentioned in the chart.

As we all know Market is supreme. We can just make assumptions, using the available tools and resources.

The above chart is for just educational purpose and not to be considered for taking any trade decisions.

Happy trading and happy weekend.