Nifty Break or Bounce! What next?

Updated

Hi mates, sharing four hours time frame chart of Nifty as we can observe on this chart that price is currently trading in a rising channel and gives a impulsive or you can say a parabolic move after breakout and now seems it's slowed down a bit in last some sessions and and on last session made a low of 19563 near to spotted a parallel channel (fresh support zone) in which it consolidated some sessions can act as a demand zone now with the price range validity of this channel is 19500 to 19350, So we can see a instant bounce back from here or after with a proper touch to that demand zone. After this bounce it can face a resistance near to 19850 levels because after hitting the all time high of 19991 on 20th July we saw a gap down of 180 points on very next session and after it tried to recover and got rejected near to 19850 levels which we can consider as a maximum highest price after this gap down and as a recovery attempt, for instance if price will break the parallel channel and trading below with bearish strength we can see a breakout retest of horizontal resistance too and a bounce back from there.

Resistance after bounce for again marching upwards

Expected levels-:
After bounce back we can see 20000 and 20100 levels again near to rising trendline.

After break of parallel channel we can see breakout retest near to horizontal resistance which is 18900 levels.

This is not and trade or investment advice. This publication is meant for only learning purpose.

Regards- Amit

Note

MOVING TOWARDS PARALLEL CHANNEL, IDENTIFIED SOMETHING NEW SO UPDATING THIS IDEA THAT AFTER YESTERDAY'S RETRACEMENT IT TOOK A NEW RESISTANCE ONE RESISTANCE IS ALREADY MENTIONED IN IDEA. AND SEEMS IT CREATED OR STARTED TRADING IN LOWER HIGH PATTERN ON THIS PROVIDED CHART

Note

Price properly touched the rising and parallel channel both and got a good bounce from there, so everything is fine as long as price is trading above this channel

Note

PRICE BROKE RISING CHANNEL AND REACHED TO PARALLEL CHANNEL BUT DID NOT SUSTAIN BELOW AND GOT A GOOD BOUNCE SO UNTIL PRICE DID NOT BREACH AND CLOSE BELOW THIS PARALLEL CHANNEL WE CAN EXPECT A BOUNCE AS MENTIONED IN IDEA TOO

AMIT-RAJAN

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