A trendline connecting previous swing lows would cruise around 14,750 levels ahead and provide some support. The next one is poised at the 14,350 area for a 38% pullback. In earlier posts, I have written about how only the minimal Fibonacci retracement has been achieved so far. These two also indicate a bearish state of affairs. The Directional Index lines are negative and the -DI line has actually taken up dominance. Next, we see that the oscillators are in sync with the down move in the prices. In particular, Kumo twists, if not rectified quickly, will create more trended action to the downside. Further declines, if any, shall result in the short term trackers (the Tenkan-Sen and Kijun Sen lines) getting pulled beneath the cloud as well. Both of these are not good developments for the trend. The fall was also instrumental in the future cloud twisting to bearish alignment (i.e. After having crossed the cloud up way back in August 2020, the prices came down to break it (and that too a thick one) during the week ended. The first chart shows the woeful state of affairs of the bulls over this week.įirst, let’s look at the Ichimoku set up. That the selling was by larger hands was shown by the kind of aggression during the day, where not even a single 30-minute candle rallied enough to break the previous 30-minute candle high. Hence the strong decline came as a surprise. Since this fall was preceded by a gap-up open, some people were caught on the wrong side, with bull positions created and shorts covered. In a relentless bout of decline, the Nifty sliced through every intraday support laid in front of it. Then came Thursday and all those bullish views were decimated. Everyone pointed to how the market was still able to ‘hold’ the support at 15,650-15,700 area and there were enough calls for a recovery. But did traders’ spirits allow it? Hell no. ![]() ![]() When the next couple of days showed no recovery, one could gauge that the decision had been made to go lower. The market achieved those levels with a powerful gap-down on Monday that knocked the stuffing out of bulls. The minimum one was looking at was a retreat to test the March-May lows near 15,750 on the Nifty 50 – which was a few hundred points lower at that time. The market did not trouble us with uncertainty on that front at all. At the end of last week, we summed up the analysis with the reading that more declines were likely.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |