The first link is of Nifty daily chart where Nifty is close to two zones namely zone -1 & zone - 2, from where an impulse action has the possibility to hit the first competitive target of 9792.05 . Many are saying that there might be a support at around price range of zone -1, which according to the daily chart it is showing that it is a supply becoming demand zone
NIFTY DAILY -
But according to the weekly chart there is nothing. So a long is not recommended in zone -1 as there is strong chance of the zone getting broken. Also from zone-1, risk to reward is not 1:3 till target of 9792.05 . So nothing from zone-1.
NIFTY WEEKLY -
In zone -2, according to daily its a good demand zone.Weekly also showing the same thing. So from zone-2, a long is recommended according to daily chart till the first competitive target. Also risk to reward is more than 1:3. So a long from zone -2 in cash or future (in the money) is recommended. Place Entry and Stop-loss according to the zone marked. Also get out of any short positions when price reaches Zone-2 .
And if price breaks Zone-2 then shorting till zone-3 can be done. Price can have impulsive movements in-between Zone-2 & Zone-3 but there will be no positive trend reversal until Zone-3 is reached as it has the highest probability to be the maximum pullback.Fibonacci levels are drawn as a contrarian. Also it is a very good demand zone. So if nifty touches Zone-3, it will make a new high. A long from Zone-3 can be done thereafter.
Note:- I will be following my own analysis as above and someone else following it should do at their own risk.
Peace!!
NIFTY DAILY -
But according to the weekly chart there is nothing. So a long is not recommended in zone -1 as there is strong chance of the zone getting broken. Also from zone-1, risk to reward is not 1:3 till target of 9792.05 . So nothing from zone-1.
NIFTY WEEKLY -
In zone -2, according to daily its a good demand zone.Weekly also showing the same thing. So from zone-2, a long is recommended according to daily chart till the first competitive target. Also risk to reward is more than 1:3. So a long from zone -2 in cash or future (in the money) is recommended. Place Entry and Stop-loss according to the zone marked. Also get out of any short positions when price reaches Zone-2 .
And if price breaks Zone-2 then shorting till zone-3 can be done. Price can have impulsive movements in-between Zone-2 & Zone-3 but there will be no positive trend reversal until Zone-3 is reached as it has the highest probability to be the maximum pullback.Fibonacci levels are drawn as a contrarian. Also it is a very good demand zone. So if nifty touches Zone-3, it will make a new high. A long from Zone-3 can be done thereafter.
Note:- I will be following my own analysis as above and someone else following it should do at their own risk.
Peace!!