Hello Traders,
N50 is trading really „unemtional“, ranging a bit in a sideways consolidation, that exceed to a 0.535 Fibonacci. A level what is really often touched by this Index!
After making a high at 10945 N50 declined in a „five-down“ to 10588.25. This was betted in a trendchannel.
As long as this low is in place, the next move could be a 0.382-0.618 Fibonacci retracement, that will bring N50 into the area of 10723-10806! Here we have to judge which pattern has still developed.
Trading below 10588 will open the door to ~ 10550 zone, marked with the grey, soft rising trendline. This one becomes more and more important as often it got touched and remains valid. A solid break of this line and the level will bring N50 to lower prices still.
For now I favor the idea, that N50 has finished a wave 2 pullback at 10943 and is in the early stages of a wave 3 decline that will lead the Index to much lower prices still.
At the bigger „time-windows“ it is still to observe, that the Major Indices for India have reversed at or near the 0.5-0.618 Fibonacci levels after a first decline (graph below)!
So, as long as the 11384 level is not achieved and not be outbid, the focus is to the downside and an
continued correction.
At the weekly chart you will observe the rising red trendline. This one connects the lows of 2008 and Jan 2016. This line is important and a break of this can be the entrance to a much greater move to the downside.
Have a great weekend....
ruebennase
N50 is trading really „unemtional“, ranging a bit in a sideways consolidation, that exceed to a 0.535 Fibonacci. A level what is really often touched by this Index!
After making a high at 10945 N50 declined in a „five-down“ to 10588.25. This was betted in a trendchannel.
As long as this low is in place, the next move could be a 0.382-0.618 Fibonacci retracement, that will bring N50 into the area of 10723-10806! Here we have to judge which pattern has still developed.
Trading below 10588 will open the door to ~ 10550 zone, marked with the grey, soft rising trendline. This one becomes more and more important as often it got touched and remains valid. A solid break of this line and the level will bring N50 to lower prices still.
For now I favor the idea, that N50 has finished a wave 2 pullback at 10943 and is in the early stages of a wave 3 decline that will lead the Index to much lower prices still.
At the bigger „time-windows“ it is still to observe, that the Major Indices for India have reversed at or near the 0.5-0.618 Fibonacci levels after a first decline (graph below)!
So, as long as the 11384 level is not achieved and not be outbid, the focus is to the downside and an
continued correction.
At the weekly chart you will observe the rising red trendline. This one connects the lows of 2008 and Jan 2016. This line is important and a break of this can be the entrance to a much greater move to the downside.
Have a great weekend....
ruebennase