Hello Traders,
on Monday, February 6th, NIFTY50 open with a gap-down. The correction morph into a "three-down", which could be a wave 2 of a new impulse, or it is part of the longer lasting correction, started on December 01!
Anyway! The decline since, established a trend-channel, connecting the highs @ 18696 and 18201, both are wave ((B)) levels and part of a double correction.
It needs a move above the trend line mentioned before to 18K levels to manifest the bullish idea!
A first target range is at or around the 18129 area.
A decline below the possible wave c/y level @ 17730 would open the door to lower lows with targets around17600 range!
The picture is not clear right now, and I think the correction isn't done to the downside, and a break of the 17777 range could be a first hint for more weakness to come.
Notice the volume profile below the chart. Since the massive buying interest at the possible wave ((B)) low @ 17445, volume is weakening by a rising price. This is a divergence that more often than not gives you a first hint what to come next! Watch this!
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
on Monday, February 6th, NIFTY50 open with a gap-down. The correction morph into a "three-down", which could be a wave 2 of a new impulse, or it is part of the longer lasting correction, started on December 01!
Anyway! The decline since, established a trend-channel, connecting the highs @ 18696 and 18201, both are wave ((B)) levels and part of a double correction.
It needs a move above the trend line mentioned before to 18K levels to manifest the bullish idea!
A first target range is at or around the 18129 area.
A decline below the possible wave c/y level @ 17730 would open the door to lower lows with targets around17600 range!
The picture is not clear right now, and I think the correction isn't done to the downside, and a break of the 17777 range could be a first hint for more weakness to come.
Notice the volume profile below the chart. Since the massive buying interest at the possible wave ((B)) low @ 17445, volume is weakening by a rising price. This is a divergence that more often than not gives you a first hint what to come next! Watch this!
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!