well , so now we have entered the trendline that was once used as the lower trendline where buying call would have been indicated, literally it means that if there was no covid19 crash and we were to trade, we would have certainly look for a long trade here. Now the question is whether this trendline will act as a resistance or support. To answer this question I think the fib retracement is giving some idea. It is indicating that 17349 is 200 percent retracement where nifty stayed 6 days and did not give a single day close below it and today it has ran fast to 17519.
From this a conclusion can be taken that 17350 now became a strong support on weekly close basis and target should be 2.272 fib retracement on the upside which is 18688. Reaching at this target the yellow trendline whih was behaving like a resistance will again be a resistance. Now to believe on this logic a strong opening tomorrow is required and price should remain above 17460-17470 around which this trendline goes. Daily ATR is 141, so the target will be 17600-17660. with a stoploss of 17450 in one hour chart.
From this a conclusion can be taken that 17350 now became a strong support on weekly close basis and target should be 2.272 fib retracement on the upside which is 18688. Reaching at this target the yellow trendline whih was behaving like a resistance will again be a resistance. Now to believe on this logic a strong opening tomorrow is required and price should remain above 17460-17470 around which this trendline goes. Daily ATR is 141, so the target will be 17600-17660. with a stoploss of 17450 in one hour chart.