Nifty 50 IndexShort
NIFTY CRASH INCOMING??
Updated
The Nifty 50 chart displays a classic head and shoulders breakdown, signaling a potential reversal of the prior bullish trend. The breakdown occurred as the price decisively breached the neckline around the 24,590 level, which coincides with the 70% Fibonacci retracement.
This breakdown suggests a potential bearish move, with the price targeting key Fibonacci support levels, particularly the 78.20% (24,399.50) and 88.20% (24,168.35) retracement levels. The bearish sentiment is reinforced by the high-volume sell-off after the neckline breach, indicating strong selling pressure.
However, if the price retraces back above the 61.80% Fibonacci retracement level (24,783.40), it could invalidate the bearish setup, signaling that the pattern may have failed. The 25,063.35 level (50% retracement) would act as the next major resistance if the bounce continues.
The measured move from the head-and-shoulders pattern projects further downside, potentially aligning with the 23,980 level or even lower, depending on market momentum. Traders should watch these key levels for confirmation of continued downside or a reversal if the price reclaims the neckline.
This breakdown suggests a potential bearish move, with the price targeting key Fibonacci support levels, particularly the 78.20% (24,399.50) and 88.20% (24,168.35) retracement levels. The bearish sentiment is reinforced by the high-volume sell-off after the neckline breach, indicating strong selling pressure.
However, if the price retraces back above the 61.80% Fibonacci retracement level (24,783.40), it could invalidate the bearish setup, signaling that the pattern may have failed. The 25,063.35 level (50% retracement) would act as the next major resistance if the bounce continues.
The measured move from the head-and-shoulders pattern projects further downside, potentially aligning with the 23,980 level or even lower, depending on market momentum. Traders should watch these key levels for confirmation of continued downside or a reversal if the price reclaims the neckline.
Trade closed: target reached
24,168.35 is done today!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.