NIFTY moving in a broadening wedge since October 2021, with trendlines being heavily respected.
This broader wedge coinciding with 0.786 Fib Retracement indicates that 14,900-15,100 may be the bottom.
There is a huge supply zone/ bear gap of 200 points between 16,450-16,650 for NIFTY which is the immediate major hurdle.
After the continuous down-move since April 2022, NIFTY is now forming a bearish Pennant. Breakout of this Pennant will face major resistance of the abovementioned bear gap along with the descending 200 EMA. Considering current market conditions, this seems like the less likely outcome.
However, a breakdown from the Bearish Pennant will send NIFTY into a free fall till 14,900-15,100 area, which would be a great place to take long positions and pick up quality stocks, with a possible Inverted H&S or Double Bottom reversal likely at such time.
This broader wedge coinciding with 0.786 Fib Retracement indicates that 14,900-15,100 may be the bottom.
There is a huge supply zone/ bear gap of 200 points between 16,450-16,650 for NIFTY which is the immediate major hurdle.
After the continuous down-move since April 2022, NIFTY is now forming a bearish Pennant. Breakout of this Pennant will face major resistance of the abovementioned bear gap along with the descending 200 EMA. Considering current market conditions, this seems like the less likely outcome.
However, a breakdown from the Bearish Pennant will send NIFTY into a free fall till 14,900-15,100 area, which would be a great place to take long positions and pick up quality stocks, with a possible Inverted H&S or Double Bottom reversal likely at such time.
