Nifty: In A Range. Will It Break?

Hi
I think market is at a crucial juncture so there is need to do some analysis.
Market has been in a very choppy range for the last week or so. The minor trends in this range were down as market has been making lower highs and lower lows.

What if this downtrend continuous?
Market has tested an important 50 % retracement level of 10856 on Friday. If market breaks this level decisively, I ll be looking for 10643-10700 zone as my target for next week.

What are the chances of a bounce back?
Markets are oversold on higher timeframes. It has touched an important 50% retracement level also. So probability for a bounce back can't be neglected.
But when will we take the long trade in case of bounceback?
Let the market first break lower lows-- lower highs structure. For that it ll have to show strength beyond 11035 level. There could be a breakout long entry or the pullback entry depending on ones' trading style.

What targets to expect on upside?
First 11136-11200 zone and then 11285-11306 zone.

I hope this analysis will help some traders in making better decisions for next week.

Regards

Comentário:

Woa!! I just love seesaw action in the indices.
Nifty just touched the key resistance mentioned in the chart (11035) and dived back to the lower end of it's range.
Looks like sellers are strong and want to push it lower. Let's see if it can touch my lower targets.
.

Trade fechado: objetivo atingido:

Downside target (10643-10700) hit.