Hello Traders,
on January 20 NIFTY50 popped to 12427.95 and reversed sharply for the remainder of the day. It declined lower at the following hours to 12088.80 on January 22 and start a countertrend after it reached this area. The declining structure is not clear to my view, not implying a clear „five-down“ neither a clear corrective pattern.
At the 15 min chart, you will observe, that the decline achieved a bit below the 0.618 Fibonacci of the advance from 11929 on January 8. Price „dived“ into the open-gap zone (12020-12132) and reversed.
So it could be all of a first leg down and a countertrend is next, or after a short recovery price will soon decline lower.
If a countertrend is next, a possible range for the end of it is at 12217, which represent the 0.382 Fibonacci of the decline. One more range is at 12237-12258, both of which are the 0.382-0.5 Fibonacci of their advance from 11929-12427.95. Support becomes resistance!
A close of the open gap (12020-12132) will not rescind the forecast, while a drop below 11929
opens the door to differing interpretations.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
on January 20 NIFTY50 popped to 12427.95 and reversed sharply for the remainder of the day. It declined lower at the following hours to 12088.80 on January 22 and start a countertrend after it reached this area. The declining structure is not clear to my view, not implying a clear „five-down“ neither a clear corrective pattern.
At the 15 min chart, you will observe, that the decline achieved a bit below the 0.618 Fibonacci of the advance from 11929 on January 8. Price „dived“ into the open-gap zone (12020-12132) and reversed.
So it could be all of a first leg down and a countertrend is next, or after a short recovery price will soon decline lower.
If a countertrend is next, a possible range for the end of it is at 12217, which represent the 0.382 Fibonacci of the decline. One more range is at 12237-12258, both of which are the 0.382-0.5 Fibonacci of their advance from 11929-12427.95. Support becomes resistance!
A close of the open gap (12020-12132) will not rescind the forecast, while a drop below 11929
opens the door to differing interpretations.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!