NIFTY1! trade ideas
NIFTY H&SKey Points:
Head and Shoulders Pattern: This is typically a bearish reversal pattern when it occurs at the top of an uptrend, suggesting that prices may continue to drop after breaking the neckline.
Neckline: The horizontal support level (in red) that has been broken or is at risk of being broken, which could confirm the downtrend.
Volume: It is often useful to confirm this pattern with a volume decrease during the formation of the Head and an increase during the breakdown.
Potential Action:
If the price breaks and closes below the neckline (the red support line), it could signal further downside, indicating a potential sell signal.
Traders may set a target by measuring the height from the neckline to the top of the head and projecting it downward from the breakdown point.
Nifty and Bank Nifty analysis || 7th October ||Here in this video we have discussed Nifty and Bank Nifty current trend, possible support and resistance levels, and our trade plan for Monday, 7th October.
Video review-
Both Nifty and Bank Nifty shifted their trend, and converted to a downtrend. Here in this video we have discussed and plotted possible support and resistance levels based on Fibonacci for tomorrow and tried to create a trade plan..
Hopefully this video may help you to understand the market trend better, and will be beneficial to make your trade plan better
GIFT Nifty 50 Index Futures – Retracement in ProgressThe GIFT Nifty 50 Index Futures chart shows a clear uptrend, with recent price action facing a corrective pullback after a strong rally. The price is currently approaching key Fibonacci retracement levels, offering a potential buying opportunity within the ascending channel.
Technical Insights:
Ascending Channel:
The index has been moving in a well-defined upward channel since June 2024. The current retracement is testing the middle of this channel, which could provide support near the 38.2% Fibonacci retracement level at 25,039.
Fibonacci Retracement:
The price has retraced from its recent high of 25,828 and is testing the 38.2% retracement level at 25,039. If this level holds, we can expect the price to bounce back towards the upper channel resistance around 26,500.
A deeper retracement could test the 50% level at 24,314 or the 61.8% level at 23,590, which align with the lower boundary of the channel.
Support and Resistance:
Support Levels : The immediate support lies at 25,039 (38.2% Fibonacci), followed by 24,314 (50% Fibonacci) and 23,590 (61.8% Fibonacci).
Resistance Levels : Immediate resistance stands at 25,828 (recent high), followed by the upper channel boundary around 26,500 .
Volume Analysis:
Volume has spiked during this retracement, indicating that selling pressure is being absorbed. However, sustained buying interest is crucial to confirm any bounce from current levels.
RSI (Relative Strength Index):
The RSI has pulled back from overbought levels and is currently near the 50 mark, suggesting neutral momentum. A drop below 40 could indicate further downside, while a move above 60 would confirm a renewed uptrend.
Outlook:
Bullish Scenario : If the index finds support near 25,039 , we could see a rebound back towards the upper channel, with potential targets at 26,000 and 26,500 .
Bearish Scenario: A failure to hold the 38.2% Fibonacci level could lead to further downside, with the next support levels at 24,314 (50% retracement) and 23,590 (61.8% retracement).
The overall uptrend remains intact, but caution is advised as the index tests key support levels. Traders can look for confirmation of a bounce before entering long positions.
