Week Started with a strong Bear attack, Nifty open at 9960 and fell to the low of 9816 levels and close the day at 9872.60 levels which are a fall of almost -0.92%. Bulls try to push nifty above 9900 levels but fail to do so.
Nifty has already retraced 61.8% of its previous up move, from the low of 9685 levels to the high of 10179 levels, which act as a good support. Below is the Chart which shows the Fibonacci levels. Nifty Next support levels are at around 9790-9750-9700.
Price Pattern clearly showing “M” Top Pattern.Price has broken the earlier trendline support of 9950 levels. Next Trendline support is also at around 9780 – 9700 levels.
Weekly Chart is also attached below for your reference.
Tomorrow might be another Bear day as major global indices are trading in the red. Don’t jump into trade at opening let markets to settle for 1st 10-15 mins.
Double Top / M Top
The double-top pattern is found at the peaks of an upward trend and is a clear signal that the preceding upward trend is weakening and that buyers are losing interest. Upon completion of this pattern, the trend is considered to be reversed and the security is expected to move lower.
The first stage of this pattern is the creation of a new high during the upward trend, which, after peaking, faces resistance and sells off to a level of support. The next stage of this pattern will see the price start to move back towards the level of resistance found in the previous run-up, which again sells off back to the support level. The pattern is completed when the security falls below (or breaks down) the support level that had backstopped each move the security made, thus marking the beginnings of a downward trend.
Learning Source: investopedia.com
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