Hello traders,
NIFTY50 gaped down today (to 9025) and left this gap open at chart!
This creates an „Island-reversal-gap“ also and it could indicate a change of trend to the downside.
Yesterday`s „bearish-engulfing“ was established today.
So, as long as the high @ 9385 is valid, the focus is on the downside. It could be, that N50 will close this open gap as of today`s trading, but this is not required.
A break of 8823 would make the odds high, that the trend reversal has occurred.
On the other hand. At a lower timeframe (15 min) you will observe a clear „five-down“ to my view. If so, a countertrend within a „three-up“ should be next to retrace a good portion of today`s decline. If today`s decline is the first wave of wave „1“ down, a common retracement area is from 9092-9204, including the 0.382, the 0.5 and the 0.618 Fibonacci retracements.
After that, if so to occur, the next significant move should be to the downside.
Let`s wait and check the pattern in the coming hours.
Have a great and safe week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
NIFTY50 gaped down today (to 9025) and left this gap open at chart!
This creates an „Island-reversal-gap“ also and it could indicate a change of trend to the downside.
Yesterday`s „bearish-engulfing“ was established today.
So, as long as the high @ 9385 is valid, the focus is on the downside. It could be, that N50 will close this open gap as of today`s trading, but this is not required.
A break of 8823 would make the odds high, that the trend reversal has occurred.
On the other hand. At a lower timeframe (15 min) you will observe a clear „five-down“ to my view. If so, a countertrend within a „three-up“ should be next to retrace a good portion of today`s decline. If today`s decline is the first wave of wave „1“ down, a common retracement area is from 9092-9204, including the 0.382, the 0.5 and the 0.618 Fibonacci retracements.
After that, if so to occur, the next significant move should be to the downside.
Let`s wait and check the pattern in the coming hours.
Have a great and safe week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.