Nifty Weekly - Descending triangle breakout may happen this week
Nifty is currently in a bearish descending triangle pattern with the base forming at 17760-17800 region. This region has acted as a support and resistance multiple times and was also the gap area where from Nifty got to its all time highs. It is also the 50% retracement area for Swing high of 18887 to Swing low of 16747.
Bullish theory: -
On Fri Nifty once again took support from the base area and then took off and reached 18k. For a bullish move to continue, on Monday Nifty needs to sustain itself above the triangle trendline and then effectively takeout the last Swing high of 18141. It is also the weekly doji high which provides an added confirmation that if Mon close happens above this level or close to it then NIfty can be very bullish in the near term.
Bearish theory: -
Currently far away from Nifty is the base area of 17760 to 17795. But if Nifty is unable to sustain itself above the descending triangle and is not able to take out 18141, then it can come back to retest this area and perhaps this time it will break through this area as 3/4th of triangle is already completed and that signals a trend change either way.
This week could see a lot of movement in Nifty as it has been stuck in a range for over a month now. Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Bullish theory: -
On Fri Nifty once again took support from the base area and then took off and reached 18k. For a bullish move to continue, on Monday Nifty needs to sustain itself above the triangle trendline and then effectively takeout the last Swing high of 18141. It is also the weekly doji high which provides an added confirmation that if Mon close happens above this level or close to it then NIfty can be very bullish in the near term.
Bearish theory: -
Currently far away from Nifty is the base area of 17760 to 17795. But if Nifty is unable to sustain itself above the descending triangle and is not able to take out 18141, then it can come back to retest this area and perhaps this time it will break through this area as 3/4th of triangle is already completed and that signals a trend change either way.
This week could see a lot of movement in Nifty as it has been stuck in a range for over a month now. Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Feragatname
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