Medium Term Trend: ↓Down (Changes to up above 11950)
Black Friday : Nifty had yet another disastrous session. It opened with a huge gap down at 11350 levels and drifted towards 11200 levels as the trading progressed. It closed with a whopping loss of 400+ points.
We have been saying since last few days ( since Monday after Nifty opened with the first gap down at 11950 levels) that market near term trend has turned down and its likely that we see a fall from here. Infact we had advised all our subscribers that 11200 is the logical target for this downmove which was sort of achieved today.Nifty had seen back to back 'island reversal' pattern this week ( jsut one island reversal pattern is enough to destroy markets and here we had 2 so the fall we are seeing is not surprising).
Now it doesnt take a genius to figure out that markets are in the grip of a severe bearish grip having said this, markets are falling non stop since Monday and have fallen almost 900 points in 5 days and markets dont move in just one direction for too long so its likely that we see some sort of bounce coming in next few days. Going forward the gap are we witnessed today (11350-11550) assumes a lot of significance. If Nifty wants to find its feet it must conquer this gap in next few trading session. If we see some consolidation around current levels and then a move back above this gap then that would be the first sign of markets getting stabilised.
For now Nifty has to stop falling, once that is achieved then only we can hope or expect markets to move up again. short term and medium term have been completely destroyed but long term trend of market is still intact however one can not trade as per long term charts and trading has to be done basis short term/medium term view. As long as short term and medium term is down we dont recommend going long ( doesnt matter how lucrative the prices seems).
In summary, we need to observe if Nifty is holding levels around 11100-11200 and then if it manages to move back above 11500 levels. On the other hand, continuous weakness below 11100 and 11K levels could be extremely serious and could even threaten the long term pattern
Happy Trading!
Black Friday : Nifty had yet another disastrous session. It opened with a huge gap down at 11350 levels and drifted towards 11200 levels as the trading progressed. It closed with a whopping loss of 400+ points.
We have been saying since last few days ( since Monday after Nifty opened with the first gap down at 11950 levels) that market near term trend has turned down and its likely that we see a fall from here. Infact we had advised all our subscribers that 11200 is the logical target for this downmove which was sort of achieved today.Nifty had seen back to back 'island reversal' pattern this week ( jsut one island reversal pattern is enough to destroy markets and here we had 2 so the fall we are seeing is not surprising).
Now it doesnt take a genius to figure out that markets are in the grip of a severe bearish grip having said this, markets are falling non stop since Monday and have fallen almost 900 points in 5 days and markets dont move in just one direction for too long so its likely that we see some sort of bounce coming in next few days. Going forward the gap are we witnessed today (11350-11550) assumes a lot of significance. If Nifty wants to find its feet it must conquer this gap in next few trading session. If we see some consolidation around current levels and then a move back above this gap then that would be the first sign of markets getting stabilised.
For now Nifty has to stop falling, once that is achieved then only we can hope or expect markets to move up again. short term and medium term have been completely destroyed but long term trend of market is still intact however one can not trade as per long term charts and trading has to be done basis short term/medium term view. As long as short term and medium term is down we dont recommend going long ( doesnt matter how lucrative the prices seems).
In summary, we need to observe if Nifty is holding levels around 11100-11200 and then if it manages to move back above 11500 levels. On the other hand, continuous weakness below 11100 and 11K levels could be extremely serious and could even threaten the long term pattern
Happy Trading!
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