NIFTY50....Oversold enough to ris?
Hello Traders,
NIFTY50 declined this morning to the lower boundary of the trend channel and reversed since. The move from this low (@10924) is quite shallow and not strong, suggesting a sideways move with maybe fresh new lows on Monday or Tuesday or so.
Today`s technical are the following: a/d-ratio closed @ 0.9 (according to traderscockpit.com/?pageView=live-nse-advance-decline-ratio-chart ) and the daily TRIN closed 0.4, which is a strong bullish sign.
At the hourly chart, there is to observe, that the waves from the 10782 low show overlapping structure an indicate a weakening inner structure, with new lows ahead. I am not sure if this was all of the correction, but as you know, a wave „4“ of any degree can morph into a sideways move, a triangle, for example, is- so this is one of the opportunities I am focused on.
Switch over to the weekly chart, the move from 12103 does not look complete too.
The TRIN (SMA10) @ 1.69 looks oversold enough to let the market rise again. But will he?
By the way. This is the highest oversold level for more than 1 year.
Observing the technical data for N50, the MACD and the Stochastic implicate that the market could fall for some hundred points and more. The MACD histogram has lost its speed to the downside and Stoch is still in a neutral zone, a countertrend always possible, but normally a correction is ending not in to „now where“!
Even so to observe is, that he Donchian channel act as support last week, while price touched this level, but this week's candle looks like a“Hanging-Man“, not textbook-like but still it is. And price has bounced back to the lower boundary of the upward trend channel, a „kiss good buy“?
On a weekly basis just rise above the middle line of the Donchian channel, which is it`s avg, will be a first hint that the trend may change.
As long as N50 is below the wave „iv“ high @ 11181.30 the trend is focused down and a break of the lower boundary of the channel (grey) will open the door to the 10782 area and below.
Be patent these days, times are not normal!!!
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
NIFTY50 declined this morning to the lower boundary of the trend channel and reversed since. The move from this low (@10924) is quite shallow and not strong, suggesting a sideways move with maybe fresh new lows on Monday or Tuesday or so.
Today`s technical are the following: a/d-ratio closed @ 0.9 (according to traderscockpit.com/?pageView=live-nse-advance-decline-ratio-chart ) and the daily TRIN closed 0.4, which is a strong bullish sign.
At the hourly chart, there is to observe, that the waves from the 10782 low show overlapping structure an indicate a weakening inner structure, with new lows ahead. I am not sure if this was all of the correction, but as you know, a wave „4“ of any degree can morph into a sideways move, a triangle, for example, is- so this is one of the opportunities I am focused on.
Switch over to the weekly chart, the move from 12103 does not look complete too.
The TRIN (SMA10) @ 1.69 looks oversold enough to let the market rise again. But will he?
By the way. This is the highest oversold level for more than 1 year.
Observing the technical data for N50, the MACD and the Stochastic implicate that the market could fall for some hundred points and more. The MACD histogram has lost its speed to the downside and Stoch is still in a neutral zone, a countertrend always possible, but normally a correction is ending not in to „now where“!
Even so to observe is, that he Donchian channel act as support last week, while price touched this level, but this week's candle looks like a“Hanging-Man“, not textbook-like but still it is. And price has bounced back to the lower boundary of the upward trend channel, a „kiss good buy“?
On a weekly basis just rise above the middle line of the Donchian channel, which is it`s avg, will be a first hint that the trend may change.
As long as N50 is below the wave „iv“ high @ 11181.30 the trend is focused down and a break of the lower boundary of the channel (grey) will open the door to the 10782 area and below.
Be patent these days, times are not normal!!!
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
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