Nifty 50 Index is currently trading within a very important zone in simple words called area of interest Usually consisting of demand or supply zone. This level has acted as a solid base for the index.
The NIFTY 50 index presents a promising opportunity to initiate long positions at these levels (CMP23,000),Aligning well with the risk reward ratio and making it a favourable entry point for traders looking for Taking advantage of the upcoming trend.
The index has shown a pattern of forming lower highs and lower lows, which indicates a downtrend. However, the Relative Strength Index (RSI) is showing a contrasting pattern of higher highs and higher lows. This divergence between price action and RSI suggests a potential shift in momentum and a possibility of a short covering rally.
Adding to this I see a falling wedge pattern which is a bullish signal suggesting an upward price movement which typically appears in a downtrend and often seen as a bullish Reversal pattern.
The analysis holds true when price close above 23,824 - daily timeframe.
While entering on current levels also has good opportunity of risk reward ratio, I suggest looking for a pin bar candle on today's close will Confirm Market picking support from the levels.
Conversely if nifty 50 index continues to recover, We could see a push towards 24,200 and 24,800 Which represent key Resistance areas. A good breakout above these levels likely signal Continuation of bullish trends in the indian markets.
The NIFTY 50 index presents a promising opportunity to initiate long positions at these levels (CMP23,000),Aligning well with the risk reward ratio and making it a favourable entry point for traders looking for Taking advantage of the upcoming trend.
The index has shown a pattern of forming lower highs and lower lows, which indicates a downtrend. However, the Relative Strength Index (RSI) is showing a contrasting pattern of higher highs and higher lows. This divergence between price action and RSI suggests a potential shift in momentum and a possibility of a short covering rally.
Adding to this I see a falling wedge pattern which is a bullish signal suggesting an upward price movement which typically appears in a downtrend and often seen as a bullish Reversal pattern.
The analysis holds true when price close above 23,824 - daily timeframe.
While entering on current levels also has good opportunity of risk reward ratio, I suggest looking for a pin bar candle on today's close will Confirm Market picking support from the levels.
Conversely if nifty 50 index continues to recover, We could see a push towards 24,200 and 24,800 Which represent key Resistance areas. A good breakout above these levels likely signal Continuation of bullish trends in the indian markets.
Trade active
Inverted H&S Pattern on the 15min TF Wait for a proper green candle to take Entry 1D-TF
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Related publications
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.