Nifty 50 near 38.20% Fibonacci Level 9400 = WAIT NEUTRAL
NIFTY
does not Break the 38.20% Monthly Fibonacci Level = 9400, What Next? - Case 1: If Nifty stays Neutral and above 75mins 50EMA without retracing back to Monthly Support and Breaks the 38.20% in next few trading sessions = It is successful in making a Higher High Daily Swing more than 9390.85 of 20th April, indicating the continuation of Daily UpTrend.
- Assuming the above case is false, then Case 2: If Nifty goes back to Monthly Support = It failed to make a Higher High Daily Swing more than 9390.85 of 20th April, Forming a Daily Lower Higher, indicating the end of Daily UpTrend + It also broke the 75mins 50EMA indicating a 75mins Down Trend + It also made 2 Weekly Hanging Man Candle on 13th April and 20th April which is a Bearish Reversal Pattern.
- Assuming the above cases are false, then Case 3: If Nifty still Breaks the Monthly Support and goes below Low of 8909.40 of 21st April, Forming a Lower Low Swing in addition to a Higher Low = It's a confirmation of Daily Down Trend + Price is also below the 75mins 50EMA indicating a 75mins Down Trend.
- Assuming the Case 3 is true, then Case 4: Continuing the Daily Down Trend, if Nifty makes a Lower Low than 7511.10 of 24th March, Then it's a Weekly Down Trend Confirmation as Weekly already made a Lower High of 9390.85 of 20th April compared to 12246.70 of 14th Feb.
If Nifty does Break the 38.20% Monthly Fibonacci Level = 9400, What Next?
- The 38.20% Fibonacci Level of 9400 should become support from resistance for the Daily Up Trend to continue.
- Price should take support at Daily Trend Line and not make a Swing Low Lower than 8909.40 of 21st April, indicating the continuation of Daily Up Trend.
- Price may test Weekly Resistance level at 9711
- Price may test Daily 50 EMA Resistance
- 2nd Weekly Resistance at 10130
- Key Level to test 50.00% (9950) to 61.80% (10550) High probability of a pullback ending in this level and retracing back continuing the Downtrends. Stay cautious in these levels.