NIFTY: Will the Nifty extend its lossing streak, to complete the Head & Shoulder Pattern. Yes I think so!!!!
Head and shoulder pattern is in the formation of the Nifty Daily price chart. That indicates that the Nifty may tank below 5300 levels to make a low of 5177 or lower than that also. But Historically we have seen that Nifty finds good support and resistance levels at 5200 levels, so decesive break out below that only can decide the trend below that.
If we check Nifty levels through Fibonacci Theory from the High of 6338.50 (5th Nov 2010) to 5177.70 (11th Feb 2011). Nifty bounced back to find stiff resistance at 61.8% retracement levels and since then its been falling. Nifty on its downward movement, took support at 23.6% retracement levels for sometime only. Now, after some rally, Nifty faced resistance at 38.2% & once again it is at the 23.6% retacement levels. Close below the same will take the Nifty to 5350. Close below 5350, we may see Nifty at 5200 levels very soon.
Upside movement in the Nifty is capped as off now. Break out of the H&S pattern seems to be difficult. There are more bad news than the Good news in the mkt. 0.25-0.75 bps rate hike is on the cards in the near future, as the inflation is very high. For upside movemenet Nifty should close above 5600-5620 levels.
No comments:
Post a Comment