After buying rallying from 21743 to 25669 Nifty 50 is showing LL LH formation.
A Head & Shoulders (H&S) pattern on the daily charts is being formed. The right shoulder just got rejected at the same zone where the left shoulder was formed.
Lower High formation: The Previous high of 25250 is not breached, and a new lower high formed at 25150.
H&S Pattern visible: Head at ~25669, shoulders around ~25200. Base of H&S can be considered at 24450.
H&S Target: Possible downmove of 1200 points (distance from base to head) downside till 23250. Consequently, this is also a 61.8% retracement of the full buying rally
Weekly Gap Pending: 24600–24630 is the first target due to the gap.
Next big support: 24000, which is a psychological round number + pending gap. This is a likely bounce area if 24,450 doesn’t hold.
More support: 23750: 50% Fibonacci level of buying trend 22830: Weekly gap
No comments:
Post a Comment