ruebennase

NIFTY50...A triangle`s thrust?

NSE:NIFTY   Nifty 50 Index
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Hello Traders,
today I`d like to show you one of the pattern I still monitor.
It is a „barrier-triangle. This kind of a triangle implies, as other triangle too, a sideways move in the market, and shows a horizontal or nearly horizontal line, while the lower line is rising in this case.
The rise from the wave ((b)) low to wave ((c)) high is a clear five-up, and is either wave i of ((c )) or it is all of wave ((c))!
The first possibility will show a „thrust“ which is the final move after a triangle has endet and is signaling a change of trend. On a higher timeframe this would indicate a decline to fresh new lows below 10k! A decline below the wave (e) low at 10583 will be a good sign that the triangle has endet and the forecast is working.
On the very short term a decline into the range from 10787-10814 is maybe next to occur, which include a wave 4 low of lesser degree and will take the shape of an a-b-c move.
On a daily chart you will observe a bearish candlestick-pattern, an „Evening star“! While N50 is often facking around with technical signals, a candlestick pattern is often valuable to indicate the next move. Observing the last 3 daily candles, you will notice that the „real star“ of the formation (the middle candle) is „thin“ and shows a mini trading range. The candles befor and after the star is clearly much „bigger“ and that is the message this formation is telling us. As bigger the candles that surrounded the star are, as more important and powerful the signal could become.
As I wrote before, the move from 10004 area to 11118 shows overlapping waves and is to my view a corrective move, that possibly lead to new lows.
We will observe how markets will act in the coming hours and days.
Keep in mind, that overwhelming optimism by traders at lower prices is not a bull signal in most cases. It is the opposite.
So don`t be surprise on the downside, and be patient at higher highs.

Have a great weekend....
ruebennase

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Trading this analyze is at your own risk!     

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