Hello Traders,
NIFTY50 advanced to 12246 (intraday high) on February 14 and fell hard. It left four red candles at chart and today it creates a (red) „Hammer-candle“ and closed above the 0.5 Fibonacci (11931) of the countertrend from 11614-12253. The latter level was the 0.786 Fibonacci of the decline from 12427-11614!
N50 left a long lower stab, which could imply the acceptance of higher prices in the coming hours and may for the remainder of the week.
At the 30 min chart, you will observe the trend channel drawn at chart and the fact, that price seems to be ready to advance above the upper boundary. An advance above this level on a closing basis in the short term opens the door to a „gap-close“ of that has left by the trading from the close on February 17 to today`s open! One more target level is around the 12100 area.
But if N50 will drop below today`s low (@ 11908, it opens the door to lower price in the coming two trading days. One target level is around the 11856 zone, which is the 0.618 Fibonacci from 11614-12248!
Have a great day....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
NIFTY50 advanced to 12246 (intraday high) on February 14 and fell hard. It left four red candles at chart and today it creates a (red) „Hammer-candle“ and closed above the 0.5 Fibonacci (11931) of the countertrend from 11614-12253. The latter level was the 0.786 Fibonacci of the decline from 12427-11614!
N50 left a long lower stab, which could imply the acceptance of higher prices in the coming hours and may for the remainder of the week.
But if N50 will drop below today`s low (@ 11908, it opens the door to lower price in the coming two trading days. One target level is around the 11856 zone, which is the 0.618 Fibonacci from 11614-12248!
Have a great day....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!