LET THE MARKET TELL WHO WE ARE

Today #NIFTY recovered nicely from 88.8% #Fibonacci_correction of previous bullish swing from low 8269.15 to high 8844.80 settled at 8429.70. Nifty has found support near the lower band of Bollinger and settled with a bullish pin bar/ hammer triggering possibilities of ‘W’ bottom near lower band. Possibilities of harmonic patterns bearish ‘Gartley’ and bearish ‘Crab’ have also triggered as market reversed from 88% correction of previous bullish leg ‘AB’ of this pattern. Immediate resistance is now seen near 8472 zones if market decisively holds this level then next possible resistance will be around middle band of Bollinger that stands near 8580. Further moves above 8580-8600 will trigger possibilities to complete #Gartley pattern that completes near 78.6% #correction_of_bearish_leg ‘XA’ at 8937. After that life time high 9119 will remain in focus and cross and close above that level will trigger the possibilities to complete bearish crab pattern that completes near 161.8% extension o...

NIFTY spot is currently trading at 8703. It has failed to climb above 8850 during 2 consecutive attempts and witnessed a nice sell off yesterday. Index has reversed exactly from 61.8% Fibonacci correction of a bearish swing from 9119.20 to 8269.15 triggering possibilities of AB=CD pattern in line with a probable head and shoulder reversal pattern. It has already completed leg ABC legs of AB=CD pattern and now leg D is due out that completes near 7994.75 zones. Potential head and shoulder pattern has a down sloping neckline and down sloping necklines has more significance than normal one. Failure of neckline is also occurs around 8000-7990 zones and decisive closes below those levels may bring a larger degree correction in market. Stochastic had also reached in extreme overbought territory and formed a bearish cross that is also supportive for short term bears. Currently nifty has strong resistance at 8850 any recovery above that level may help this index to move towards 8937-9000 zone...

Crude is witnessing a nice recovery after getting support near 2639 which was 113% Fibonacci extension of a bullish attempt from 2720 to 3340 that took place in February 2015. Harmonic shark pattern is clearly visible on daily chart. Currently crude is trading at 3366 staying above 3340, which was top formed during bullish attempts in February. Stochastic is staying above 50 and %K has formed a cross above %D in positive territory favours bullishness in this counter. If crude holds above 3366-70 zones decisively then it will increase odds for completion of this shark that completes at 3614 or 3861 zones. Any failure of 3100 may invalidate current bullish expectations.