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Showing posts from October, 2016

NIFTY: are we ready for deeper correction?

Nifty spot is currently trading at 8565.55. This index has recently placed a top at 8968.70 which was 93.4% correction of entire bearish attempt from high 9119.20 to low 6825.80. Nifty has turned sideways near 88% Fibonacci correction of bearish move that presents ideal condition for a Bullish Bat harmonic pattern. Nifty price movement has already completed 3 legs of this pattern and now final leg ‘CD’ is in progress that completes near 88% correction of primary leg ‘XA’ which is placed at 5574. Based on price action Nifty, however, had recovered from 57% correction of bullish attempt from low of 5118.85 to high 9119.20 but failed to make a higher top to confirm continuation in longer term bullish trend and now it keeps chances alive for negatively biased sideways market. Nifty has been fluctuating between 8500-8900 zones from past few weeks and attracting buyers near the areas of 8500-8470 zones. Thus we can consider areas of 8470 as very strong support but a bearish cross on MAC...