adilsaleem said:
What next Amit , looks strong here at 2852
Hi Adil...my trading portal did not connect for a while, so unable to observe closely.
However in the bigger picture, around
2905 is the 200 DMA for the Nifty, which it has broken below last couple of days.
Now, a classic technical move would be to test that level in this pullback, is what I'd say.
I doubt if it'll manage to hold it, and if so, then expect a drop back again. This can pan on over the next few of sessions.
Further, if the 200 DMA is not held, and the Nifty drops back again to test the lowest levels again, meaning
2680 area of yesterday, the players will be watching close to see if it would create a double bottom there, meaning a classic bullish sign.
Further if so, then the test of 200 DMA may transpire yet again...
There's also the Fibonacci 50% retracement levels to track, which as I pointed out this morning, sits bang on the nose of
2584, itself a Finocci number.
So whichever way you cut it, this is a critical level.
I'm just attempting to work with a 'Lego' like probability building here.
It's going to be quite interesting.
At this point if the Nifty takes out the intraday high of
2855, the next levels to look at would be
2859-2861-2864-2870-2873-2876.