Hello Traders,
NIFTY50 dropped to a low on Feb. 19 @10585.65 and reversed. The pattern since than is „three-up“ and it retraced .382 Fibonacci of the decline from 11118. This is the most common target within a wave „b“ of a „ZigZag“, (a corrective) pattern.
If so N50 is at forefront of a decline that will at least terminte below the wave „a“ low at 10585.65! Normaly wave „c“ of a ZigZag will retrace at minimum the .618 Fibonacci (@10479.80) of wave „a“. The most common target is wave c=a. This would be the case @ 10276.40!
But keep in mind, that a possible termination point after a triangle occured is the level at which the triangle startet. This was at 10004. The move that follow after a triangle is the final move in a sequence and a reversal after will occur next.
So there is a wide range for the pattern to end.
On the other hand. Any rise abover the 10983 (the red trendline which connects the b-d-line of the triangle will make a new evaluation necessary.
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
NIFTY50 dropped to a low on Feb. 19 @10585.65 and reversed. The pattern since than is „three-up“ and it retraced .382 Fibonacci of the decline from 11118. This is the most common target within a wave „b“ of a „ZigZag“, (a corrective) pattern.
If so N50 is at forefront of a decline that will at least terminte below the wave „a“ low at 10585.65! Normaly wave „c“ of a ZigZag will retrace at minimum the .618 Fibonacci (@10479.80) of wave „a“. The most common target is wave c=a. This would be the case @ 10276.40!
But keep in mind, that a possible termination point after a triangle occured is the level at which the triangle startet. This was at 10004. The move that follow after a triangle is the final move in a sequence and a reversal after will occur next.
So there is a wide range for the pattern to end.
On the other hand. Any rise abover the 10983 (the red trendline which connects the b-d-line of the triangle will make a new evaluation necessary.
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!