#nifty50 has reached an important level i.e 11200,
Why Important - As its a level from where we had seen straight fall in nifty50.
Current Price Action Observation
Check the size of the candles of the last two rallies, most of them were indecisive candles.
Check the difference between the peaks, they are contracting.
Currently, price action, suggesting that the index is losing momentum on the upside.
Pattern
ABCD pattern is completing at 11184 levels, which aligns with price action levels - 11100 - 11200.
So what to do now?
Since the structure of the index is positive .ie higher highs and higher lows, we cannot turn bearish on the index, the only thing we can do here is to stay cautious or trade light or trail the trades, so that don't feel the FOMO.
Or
Instead of index trading, take stock specific trades, until we see some clarity as to the direction of the index,
Why Important - As its a level from where we had seen straight fall in nifty50.
Current Price Action Observation
Check the size of the candles of the last two rallies, most of them were indecisive candles.
Check the difference between the peaks, they are contracting.
Currently, price action, suggesting that the index is losing momentum on the upside.
Pattern
ABCD pattern is completing at 11184 levels, which aligns with price action levels - 11100 - 11200.
So what to do now?
Since the structure of the index is positive .ie higher highs and higher lows, we cannot turn bearish on the index, the only thing we can do here is to stay cautious or trade light or trail the trades, so that don't feel the FOMO.
Or
Instead of index trading, take stock specific trades, until we see some clarity as to the direction of the index,