Medium Term Trend:👇(Down)
Nifty @ 16840 down 530 points- Black Monday & Weakness To The Core.
In our last post we had clearly warned that -
"Failure to sustain above 17600 levels is again pointing to the fact that market is still not out of woods and one more down-leg towards 17K-16800 is very much possible from here"
we had also mentioned that " with each successive days markets internals are getting weaker and the post budget move (17600-17800) is now appearing to look like one giant bull trap"
Last week we had also tweeted and posted the below chart.
In the chart above, it can be seen that Nifty was potentially making a bearish contracting triangle, confirmation of which was to come below BD line and same has come today.
Breaking of contracting triangle is a very bearish sign for markets. It confirms that initial fall from 18500 to 16450 was a trending move and the recovery we have seen after that (in the form of ABCDE triangle) was just a corrective move. This has opened up bearish targets for as low as 15500 ( now not saying that Nifty will definitely going to touch it but its a possibility hence we must be prepared for it.
Nifty has been testing 16850-17000 support a lot of times already and ideally such important supports should not be tested again and again and though Nifty has closed just around this support zone, chances are it might not hold this time. If one is still holding on to long positions in a hope that 16850 will provide support yet again then please be careful.
Till now we had been saying that this could be a sideways phase for nifty (16500-18500) however now we have to change it. This is no sideways market, market is in grip of a strong bear wave and it will be premature to comment where it will end.
Happy Trading!
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