Title: Nifty 50 | Potential Head and Shoulders Pattern
Description:
We are currently observing a classic Head and Shoulders pattern forming on the Nifty 50 index. After a sustained downtrend, the price action has formed a well-defined left shoulder, head, and right shoulder, signaling a potential reversal.
Key Points:
Head and Shoulders Pattern: The index has formed this bearish reversal pattern, which often suggests a possible trend change.
200 EMA Resistance: The price remains below the 200 EMA (marked in red), a major resistance level, which may act as a barrier for further upward movement.
Downtrend Line: Two descending trendlines have been respected multiple times, adding confluence to the idea of a trend shift.
Rejection Zone: The highlighted red box marks a critical resistance area that the index has struggled to break, suggesting a potential move away from this zone.
Levels to Watch:
Support: 24,700 (previous support)
Resistance: 25,300 (above the 200 EMA and resistance zone)
This pattern is a key observation for traders looking to track Nifty 50’s price action. Watch closely for further confirmation before making any decisions!
We are currently observing a classic Head and Shoulders pattern forming on the Nifty 50 index. After a sustained downtrend, the price action has formed a well-defined left shoulder, head, and right shoulder, signaling a potential reversal.
Key Points:
Head and Shoulders Pattern: The index has formed this bearish reversal pattern, which often suggests a possible trend change.
200 EMA Resistance: The price remains below the 200 EMA (marked in red), a major resistance level, which may act as a barrier for further upward movement.
Downtrend Line: Two descending trendlines have been respected multiple times, adding confluence to the idea of a trend shift.
Rejection Zone: The highlighted red box marks a critical resistance area that the index has struggled to break, suggesting a potential move away from this zone.
Levels to Watch:
Support: 24,700 (previous support)
Resistance: 25,300 (above the 200 EMA and resistance zone)
This pattern is a key observation for traders looking to track Nifty 50’s price action. Watch closely for further confirmation before making any decisions!
PRO_VIVEKBHARNUKE
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.