Trend:👇(Down) - Reversal above 17300
Nifty @ 16300 down 100 points: Weakness Continues
We have been mentioning in the previous few posts that market is likely forming an 'expanding triangle' which if true, can push towards a new low below 15750 (previous swing low). In last 5 trading sessions Nifty has lost more than 1000 points, and even fallen below the low point of A leg ( 16900) increasing the possibility of the entire move (from Oct last year) is one of 'expanding triangle'.
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| Nifty Weekly |
Looking at the weekly charts it can be seen that both A & C leg previously had consumed around 9 weeks and E leg is just in its 6th week only so there is a possibility that weakness we are witnessing can continue for next 2-3 weeks more and in turn Push Nifty below 15750 ( falling towards 15K levels or even lower is a possibility too).
Overall its not looking positive for markets and its possible that markets try to suck in 'dip buyers' towards 16k levels and then falling some more from there. However there is a silver lining as well, this leg ideally should be the last leg of entire ongoing correction we have been witnessing since Oct last year (8 months) and once this gets over in next 2-3 weeks should offfer good opportunity to add long positions. So this is not the time for bottom fishing, not yet. That will come later for sure.
Trading wise one can continue to hold on to short positions with part profit bookings with trailing stop loss of 16800 levels. market has strong resistance at 16800-17K levels for short term and 17300 for medium term and till that is crossed, weakness is likely to continue.
Trade Well!
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