See how beautifully the price action is working on the NIFTY chart | Fully Explained
Recently horizontal trendline(one at the top) has reacted to its resistance, made a double top like structure and gave a gap down which will act like resistance in future.
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After the gapdown it has reacted to the support which is in parallel trendline (2nd slant one) when the market started falling after Oct 2021 and the marked pointers show that it has significant importance and maybe also called polarity, which also coincides with the 3rd horizontal line which is also a support - so this should make a good support to NIFTY.
(Gapdowns are marked in circle to show that it act as resistance in future and it beautifully reacts with the 3rd horizontal line/support)
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Now, with the future - I have marked the pointers again (on the right) up to the the 2nd horizontal line which is resistance acc. to me and guess what - when the 1st trendline (parallel one at the top) also coincides with the horizontal resistance.
Short Term - It should react soon with the resistance near 17400
Long Term - Once it crosses and sustains the levels above 17600 for 2-3 weeks, it'll definitely try to go again for ATH and with Indian Markets not much affected with Inflation and other various risks faced by other countries right now (ground level situation) - I have a full faith of this going ATH as specified in a Long Term.
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As for the trendline drawn ignoring the 18000 levels - I may call this as Control by Exception (CBSE 12th Business Studies :P) - ignoring the fakeout or as they say some percentage while marking in the chart. The same thing is done from below(blue trendline) also.
Marking point to point will make you miss out certain things - so be flexible while marking.
This thing goes for all support, resistance, trendline and stoploss.
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This is the beauty of Price Action, when you understand the wicks and its reaction - that will be the endgame.
Recently horizontal trendline(one at the top) has reacted to its resistance, made a double top like structure and gave a gap down which will act like resistance in future.
.
After the gapdown it has reacted to the support which is in parallel trendline (2nd slant one) when the market started falling after Oct 2021 and the marked pointers show that it has significant importance and maybe also called polarity, which also coincides with the 3rd horizontal line which is also a support - so this should make a good support to NIFTY.
(Gapdowns are marked in circle to show that it act as resistance in future and it beautifully reacts with the 3rd horizontal line/support)
.
Now, with the future - I have marked the pointers again (on the right) up to the the 2nd horizontal line which is resistance acc. to me and guess what - when the 1st trendline (parallel one at the top) also coincides with the horizontal resistance.
Short Term - It should react soon with the resistance near 17400
Long Term - Once it crosses and sustains the levels above 17600 for 2-3 weeks, it'll definitely try to go again for ATH and with Indian Markets not much affected with Inflation and other various risks faced by other countries right now (ground level situation) - I have a full faith of this going ATH as specified in a Long Term.
.
As for the trendline drawn ignoring the 18000 levels - I may call this as Control by Exception (CBSE 12th Business Studies :P) - ignoring the fakeout or as they say some percentage while marking in the chart. The same thing is done from below(blue trendline) also.
Marking point to point will make you miss out certain things - so be flexible while marking.
This thing goes for all support, resistance, trendline and stoploss.
.
This is the beauty of Price Action, when you understand the wicks and its reaction - that will be the endgame.
Nifty is following the price action which I have marked, as is.
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Touched 16750 and then reversed after touching the trendline (2nd Slant one) marked.
Went up to 17400, touched the resistance, which is again marked - Horizontal Line and then reversed.
and I am hoping that it'll touch 16700 again(Good Support) for gap filing(marked in july-august month) before moving up, which coincides with Diwali dates.
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The chart explains the rest.