Hello Traders,
NIFTY50 gaped higher too, as Hang Seg did in the wake of „tariff-stress“ between the US and China. The decline that starts on November 28 @ 12158 could be label as a „three-down“, but the structure is to me not clear. Overall the decline ended at a wave „4“ area of one lesser degree, which is often a target range. So if this was all of the correction, the next targets are new highs for NIFTY50.
The candlestick formation at the chart is a „Three-white-soldiers“- formation which is bullish. And it achieved bove the slightly declining trendline, blue @ the 12K area. A break of the high at 12158 will open the door to higher price still.
Note, that price has fallen off the trend channel and possibly start a new run to the lower boundary of it. Often this behavior occurs at a „kiss-goodbye“, we have to monitor this area closely.
On the other hand, a decline below 11832, the December 11 low, is bearish and will bring N50 to or around the 11800 area at first hand. At 11749 the 0.382 Fibonacci of the advance is placed, so more bearish potential for N50 exist, once it broke below the ~ 11800 area.
I will update the chart in the coming hours and days.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
NIFTY50 gaped higher too, as Hang Seg did in the wake of „tariff-stress“ between the US and China. The decline that starts on November 28 @ 12158 could be label as a „three-down“, but the structure is to me not clear. Overall the decline ended at a wave „4“ area of one lesser degree, which is often a target range. So if this was all of the correction, the next targets are new highs for NIFTY50.
The candlestick formation at the chart is a „Three-white-soldiers“- formation which is bullish. And it achieved bove the slightly declining trendline, blue @ the 12K area. A break of the high at 12158 will open the door to higher price still.
Note, that price has fallen off the trend channel and possibly start a new run to the lower boundary of it. Often this behavior occurs at a „kiss-goodbye“, we have to monitor this area closely.
On the other hand, a decline below 11832, the December 11 low, is bearish and will bring N50 to or around the 11800 area at first hand. At 11749 the 0.382 Fibonacci of the advance is placed, so more bearish potential for N50 exist, once it broke below the ~ 11800 area.
I will update the chart in the coming hours and days.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!