Hello Traders,
NIFTY50 is trading below the high on December 20 @ 12293.90!
May be an interesting pattern is underway, that opens the door for a different interpretation.
As long as N50 is trading below this level, a short term correction could be in progress, that could find support at the (blue) trendline I have drawn at chart and crosses ~ 12200 area at Monday's trading. A break of this level opens the door to the lower end of the right-hand rectangle. This large box is copied by the first (left) hand rectangle and shows the distance of the first decline. Note, if so to come, that both declines would end with a spike off the box to the downside.
Overall it includes the chance for a „barrier triangle“ what is developing and was completed at Friday's session or is close to doing so. Note, that the letter moves down retrace a bit more as a 0.618 Fibonacci of wave „c-d“. This is one rule for triangles.
A break of the December 20 high @ 12293.90 opens the door for higher price still, while a break of the downside low @ 12152.25 set the stage for a decline to 12122.25 perhaps.
So, an interesting setup for Mondays and maybe the week's session.
I will update the chart in the coming hours.
Have a great Sunday...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
NIFTY50 is trading below the high on December 20 @ 12293.90!
May be an interesting pattern is underway, that opens the door for a different interpretation.
As long as N50 is trading below this level, a short term correction could be in progress, that could find support at the (blue) trendline I have drawn at chart and crosses ~ 12200 area at Monday's trading. A break of this level opens the door to the lower end of the right-hand rectangle. This large box is copied by the first (left) hand rectangle and shows the distance of the first decline. Note, if so to come, that both declines would end with a spike off the box to the downside.
Overall it includes the chance for a „barrier triangle“ what is developing and was completed at Friday's session or is close to doing so. Note, that the letter moves down retrace a bit more as a 0.618 Fibonacci of wave „c-d“. This is one rule for triangles.
A break of the December 20 high @ 12293.90 opens the door for higher price still, while a break of the downside low @ 12152.25 set the stage for a decline to 12122.25 perhaps.
So, an interesting setup for Mondays and maybe the week's session.
I will update the chart in the coming hours.
Have a great Sunday...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!