Nifty analysis report for the Week starting on 5th Sept
Weekly Chart:
The current Trend seen on the Nifty Weekly chart !!
·??????From the lows of Mar 2020, Nifty was in uptrend forming higher highs and higher lows until Oct,2021.
·??????Post that, it started making a series of lower highs and lower lows depicting a down trend. However, the slope of trend line was not too steep questioning the validity of the downtrend.
·??????Price broke above the channel on 1st august and currently it is respecting the resistance of previous pivot high which coincides with the psychological resistance level of 18000.
·??????However, if you notice price is still in the lower high and lower low formation meaning that the downtrend is still intact. Only a decisive break above 18120 will indicate that the Downtrend is over and the up move has started.
Hourly Chart:
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Hourly chart analysis:
On the hourly chart, Price was in short term uptrend until 29th August when it broke below the Trendline (dotted line) as well as closed below the previous pivot Low. As of now, it is trading sideways which is a no Trade Zone for positional Traders (Highlighted in Yellow)
Also, the shorter-term Moving average (Red) has crossed the longer-term moving average (Blue) from above which indicates bearishness.
Neo wave analysis:
After the steep fall in the form of Wave 1, prices are in corrective mode. Also, the ongoing Wave 2 has retraced exactly 61.8% of wave 1 until now. We can expect the correction to last for a couple of days before starting a trending move in the form of wave 3 on downside. However, one must wait for the price confirmation to formulate a trading plan.
To sum it all, Nifty is trading in a sideways range and is at a very crucial juncture. Only a break above 18100 will indicate that the up move has started. However, the massive call writing seen at 18000 levels might act as a hurdle in the coming week. Market might continue to trade in a sideways trajectory for a couple of days. And positional traders must hold their patience for a while to let the volatility squeeze, post which, we can experience a tradable directional move.
Happy Trading!!