NIFTY50...Break of the baseline....down to new lows?
Hello Traders,
as of my last analyse N50 made a fresh high on Monday @ 10987 (10961.85 on a closing basis) and declined for the rest of the week. Fridays close @ 10756 was the lowest for the week and create a bearish engulfing again. The last bE occured 3 weeks ago and create a fail signal, which is often the best buy signal. We will monitor next week opening closely to judge the validity of this signal.
At the very short term you will observe, that price has popped below the base line of the trendchannel and pulled back, as to say „kiss-goodby“. If this will be the only goodby price have to decline immediatly next mondays or Tuesdays trading to fresh new lows below 10534, the low of Dec. 26 opening. A closse below that level will increase the odds, that wave 3 or C is underway.
On the other hand, if the high at ~11K will be topped on a daily closing basis we have to readjust the count and check for other possibilities.
A realy interesting pattern seems on the way to develop for NIFTY Future.
As you will notice at the graph, a potencially sHs-Formation might be underway.
On of the most important aspects for the pattern is volume. It has to rise during the left shoulder develop, and must decline till the bounce back to the first point of the neckline. During the Head is underways, Volume must achieved a top (in contrary to the left shoulder). The right shoulder is may in progress, still the fact is that price is now not declining! Volume is decling so far and fulfill the request in this case. But still a decline to the neckline, wich crosses 10054 during coming weeks trading will be a first sign for this pattern to be underway.
I will monitor this closely and update the chart if necessary.
Have a great weekend.....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
as of my last analyse N50 made a fresh high on Monday @ 10987 (10961.85 on a closing basis) and declined for the rest of the week. Fridays close @ 10756 was the lowest for the week and create a bearish engulfing again. The last bE occured 3 weeks ago and create a fail signal, which is often the best buy signal. We will monitor next week opening closely to judge the validity of this signal.
At the very short term you will observe, that price has popped below the base line of the trendchannel and pulled back, as to say „kiss-goodby“. If this will be the only goodby price have to decline immediatly next mondays or Tuesdays trading to fresh new lows below 10534, the low of Dec. 26 opening. A closse below that level will increase the odds, that wave 3 or C is underway.
On the other hand, if the high at ~11K will be topped on a daily closing basis we have to readjust the count and check for other possibilities.
A realy interesting pattern seems on the way to develop for NIFTY Future.
As you will notice at the graph, a potencially sHs-Formation might be underway.
On of the most important aspects for the pattern is volume. It has to rise during the left shoulder develop, and must decline till the bounce back to the first point of the neckline. During the Head is underways, Volume must achieved a top (in contrary to the left shoulder). The right shoulder is may in progress, still the fact is that price is now not declining! Volume is decling so far and fulfill the request in this case. But still a decline to the neckline, wich crosses 10054 during coming weeks trading will be a first sign for this pattern to be underway.
I will monitor this closely and update the chart if necessary.
Have a great weekend.....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!