Hello Traders,
The NIFTY50 fell into my target zone of 21750-21700 this week. After this decline touched this zone, it reversed and it was probably the whole weakening phase for N50!
Wednesday was the low of the mentioned range and on Thursday N50 jumped with a massive gap of 150 points to a daily close @ 22011. Today's candle is a bullish engulfing, a candlestick pattern that often leads the way higher for the coming sessions.
A first target for the bulls should be the lower trendline (black) @ 22350-22400, depending on if and when it is reached!
Bears should be focused that the low has occurred and should watch the above area for a "new" entry on the short side! Keep in mind that a new short requires a daily close below 21883 and a bearish candlestick!
From the EW count, it could be that we have seen a wave a/w with lows @ 21710 and a wave b/x in motion? I would like to see more arguments for this, because the bullish view should be a started impulsive wave to the upside.
So, traders who like to play the long side, choose a stop loss level below the bullish engulfing candle @ 21883 and make sure you don't waste any time and bring stop to exit levels asap!
Have a great weekend .....
Ruebennase
The NIFTY50 fell into my target zone of 21750-21700 this week. After this decline touched this zone, it reversed and it was probably the whole weakening phase for N50!
Wednesday was the low of the mentioned range and on Thursday N50 jumped with a massive gap of 150 points to a daily close @ 22011. Today's candle is a bullish engulfing, a candlestick pattern that often leads the way higher for the coming sessions.
A first target for the bulls should be the lower trendline (black) @ 22350-22400, depending on if and when it is reached!
Bears should be focused that the low has occurred and should watch the above area for a "new" entry on the short side! Keep in mind that a new short requires a daily close below 21883 and a bearish candlestick!
From the EW count, it could be that we have seen a wave a/w with lows @ 21710 and a wave b/x in motion? I would like to see more arguments for this, because the bullish view should be a started impulsive wave to the upside.
So, traders who like to play the long side, choose a stop loss level below the bullish engulfing candle @ 21883 and make sure you don't waste any time and bring stop to exit levels asap!
Have a great weekend .....
Ruebennase