Nifty 50 Weekly Chart Update – Potential Bounce Ahead?

The latest weekly candle on the Nifty 50 chart is forming a bullish engulfing pattern, indicating a possible short-term bounce in the coming weeks. This could present a trading opportunity for short-term traders.

Key Observations:
📈 Long-term trendline support: The trendline from COVID-19 lows is holding, suggesting a potential rebound.
📊 MACD histogram: Showing signs of decreasing bearish momentum, hinting at a possible pullback.
🔄 Fibonacci Levels: Price remains within a well-defined Fibonacci-based channel, supporting a bounce scenario.
📌 Stochastic RSI: Near oversold levels, further supporting a potential move upward.

Possible Price Targets:
🎯 Immediate resistance: 23,800 - 24,000 (short-term upside target)
🎯 Next major resistance: 24,500 - 25,000 (Fibonacci 0.618 zone & upper trendline resistance)
🔻 Support levels: 22,700 - 22,500 (If the trendline breaks, further downside possible)

A sustained move above 24,000 could trigger further upside momentum, while failure to hold the trendline support may invalidate the bullish bias.

⚠ Disclaimer: This post is for educational purposes only and should not be considered trading or investment advice. Please conduct your own research and consult a financial advisor before making any trading decisions.