Descending Wedge. Long term trend line break.
Updated
Hi all,
After a long term trend-line break in Nifty and 20-50 MA crossover in Nifty, Nifty is now respecting the short term downward trend-line. Lack of any trigger in near term can magnet nifty down to its 200 ma which is around 8200, although, I am expecting it to retrace all the way back to its 50% Fibonacci level which is around 7920.
However, this set up will no longer be valid if nifty closes above 8800 for two consecutive days. So with short to medium term perspective any one can short nifty below 8630 (break below cloud) with 8800 SL and lucrative risk reward ratio of 1: 5 (150 point stop 700 point target).
Please consider stop loss and target on closing basis only.
Thanks.
After a long term trend-line break in Nifty and 20-50 MA crossover in Nifty, Nifty is now respecting the short term downward trend-line. Lack of any trigger in near term can magnet nifty down to its 200 ma which is around 8200, although, I am expecting it to retrace all the way back to its 50% Fibonacci level which is around 7920.
However, this set up will no longer be valid if nifty closes above 8800 for two consecutive days. So with short to medium term perspective any one can short nifty below 8630 (break below cloud) with 8800 SL and lucrative risk reward ratio of 1: 5 (150 point stop 700 point target).
Please consider stop loss and target on closing basis only.
Thanks.
Note
Nifty has successfully hit the first short term target at First Fib retracement. Profitable traders can book partial profit at this level.For remaining position revised your SL to 8650 from earlier SL of 8800.
Thus, all trades will be terminating merely in profit.
Note
NIfty second position settled in the morning around 8200 now trading last one with 8500 SL
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