Nifty did maintain the exact levels and move according to that as mentioned on the last post. It broke 5035 for the day and reached 5006 (support discussed), bounced but never went above 5035 (went up to 5029). Broke down 5005 zone and a speedy sell off showed 4963 (support discussed 4965) in a hurry and bounced exactly up to previous support broken @ 5004. Closed @ 4984. Now for the day 4990 becomes (23.6rt of the ABC move up to 4963) crucial. Unless nifty crosses above 4990 and sustaining for a while can witness more sell off dip down towards 4930-4905-4890. Theoretically a violation of 4960 should be a hold for positional shorts, bt for the last few movements Nifty moving in a 2.618 ratio in stead of 1.618. So 4905 (closing basis) and 4890 can provide some support and may be the last for the bulls.
Supports: 4965 remains crucial for the day. Below that some major weakness can set in which can take nifty towards 4935-4885/80. 4905 remains very strong support ... but this time with little salt , closing basis. :). I could summarize the move as a positional short if Nifty moves below 4960, but as I said earlier, last few moves are extending 261.8 in correctives also, so that 4880/85 is holding some significance for sure.
Resistances: 4990 as said above. A convincing move above that and preferably 5005 can set a bullish tone for the sometime where Nifty can show some speedy recovery towards 5035-5055 (again converged to our last pivots, 61.8 & 78.6rt of 5082-4963 placed at that zone respectively.
Hi,
ReplyDeleteYour work is really beautiful. I appreciate your hard work and perfect technical analysis based on single Fibonacci indicator.
Thanks & regards,
Shirshendu Ghosh
www.nifty-with-ghosh.blogspot.com
Sir,
ReplyDeleteThank you so much for your such encouraging words. I genuinely feel Fibonacci numbers are intimately related with the behavioral harmony of the human psychology. May it be like/dislike pattern or be it demand/supply pattern. My work/effort revolves around that theory. Thank you so much that you are among those few analyst those who can appreciate Fibonacci's application (not mine) in the price movement. I really feel that you also doing a great job by posting your valuable charts on the web to share with we people. Please do carry on. Regards,
-Satyam Sit