CKParkhi

NIFTY PSU Banks : Entered into a time correction?

NSE:CNXPSUBANK   NIFTY PSU BANK
// PSU Bank Index//

Why does it look like a time correction going forward?

Reasons:
1. Despite taking support at 38.2% retracement of the current swing, it's over 3 weeks, the index did not revert and resumed northwards.

2. 38.2% retracement is considered as a fast retracement in a climax move like this one. If the move has true energy, prices do not stay at this retracement for long. ( Bull flag carry the same property)

3. If it is spending time here, means it is gathering energy and it may burst either side.

4. The index has retested (coming from 2018) long-term resistance that now has a confluence with a declined trendline tilted at 45 degrees.

5. In order to validate any harmonic pattern it must move towards 50% retracement (minimum), which is more likely.

6. On 07-04-2021 we had spurt weakness in USD-INR coupled with a huge gap down in EEM .

(Something fishy is going on.....)

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