From the Low of 16400 to 18200, We’ve seen Nifty 50 running over 10% in the past few weeks and that too non stop.
But now, As it is trading just 2% away from it’s previous All Time High, Can we expect some correction??
As we can see in this chart that how Nifty bottomed out at Bullish Harmonic Bat at 16400 and we saw a steep rise towards 18200 which is a potential reversal zone of Bearish Harmonic Cypher, Shark from where We might see an hourly pullback towards 20EMA or 50EMA.
Though these pattern targets are much deeper: 17600, 17500
But in this momentum where nifty is only 2% percent away from it’s ATH we might not even see a pullback towards the Hourly (20,50EMA)
On the other hand USOIL is also trading near Bearish Harmonic Bat zone and the price structure of USOIL and NIFTY is quite similar with minor Lead and Lag effect.
In Simple Terms:
Resistance~ 18214, 18396
Support~ 17900, 18050
This article is not a conclusion of where the trend will set in but just our assumption so kindly consult your financial advisor before making any decisions as we’ll not be liable for anybody’s profit and loss.
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PEACE.
