Hello Traders,
NIFTY50 has reversed strong and sharply on May 16. It achieved the level of 16160 and shows „more bullish potential“, as I wrote at my latter analysis! It runs to 16399.80 before this wave ended!
Both pullbacks, seen at this advance, have been „strong and sharply“! This kind of behavior shows the „fight“ between Traders, so called „bulls and bears“, to come to a final decision.
As a result of this, they create an „Island-reversal-gap“ that often occur at the end of a trend; in this case at the downside, after a short-term decline, that has begun on April 05!
So, what could be next?
Following idea is possible.
As to observe at the 15-min chart, I follow a double waves one's and two's! Both pullbacks decline deeply, below a 0.786 Fibo of the impulse wave one. It could be, that traders will close the open gap, left by trading on May 18-19, and May 19-20, in over-night session! More often tan not, this occurs, before the market will „explode“ to the upside.
Anyway. More interesting will be, which patterns occur on Monday's session. If N50 show a corrective pullback, it should end between 15969 – 15839 at latest! It would close the open gap, as before, and N50 is ready to rise to new and higher levels. A break of 16283 is a first positive sign for this idea; while a break of 16399.80 will generate a „new“ buying trigger and opens the door to 16686 and close another open gap. So, a lot of bullish potential.
On the other hand. A decline below 15775 will eliminate this idea and opens the door to 15735 and 15581-15461 area, with more bearish potential!
Have a great Sunday....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY50 has reversed strong and sharply on May 16. It achieved the level of 16160 and shows „more bullish potential“, as I wrote at my latter analysis! It runs to 16399.80 before this wave ended!
Both pullbacks, seen at this advance, have been „strong and sharply“! This kind of behavior shows the „fight“ between Traders, so called „bulls and bears“, to come to a final decision.
As a result of this, they create an „Island-reversal-gap“ that often occur at the end of a trend; in this case at the downside, after a short-term decline, that has begun on April 05!
So, what could be next?
Following idea is possible.
As to observe at the 15-min chart, I follow a double waves one's and two's! Both pullbacks decline deeply, below a 0.786 Fibo of the impulse wave one. It could be, that traders will close the open gap, left by trading on May 18-19, and May 19-20, in over-night session! More often tan not, this occurs, before the market will „explode“ to the upside.
Anyway. More interesting will be, which patterns occur on Monday's session. If N50 show a corrective pullback, it should end between 15969 – 15839 at latest! It would close the open gap, as before, and N50 is ready to rise to new and higher levels. A break of 16283 is a first positive sign for this idea; while a break of 16399.80 will generate a „new“ buying trigger and opens the door to 16686 and close another open gap. So, a lot of bullish potential.
On the other hand. A decline below 15775 will eliminate this idea and opens the door to 15735 and 15581-15461 area, with more bearish potential!
Have a great Sunday....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!