I have been tracking the longer time frame channel for NIFTY and that channel ( Red marked ) Have held on in the past on many corrections including the one that we had during start of 2018.
Now since the channel has broken we have pushed back to the lower end of the channel thrice, including the current peak, but have failed to break through.
Now in the past occasions we have corrected 600-700 points from the peak every time that happened twice this year (marked with blue arrows).
Assuming that thesis holds good we should see a similar move or alternatively the lower correction channel that has been forming. this points to a region of 10500-530 areas as a potential target. only a break of this channel low will open up new levels.
Now since the channel has broken we have pushed back to the lower end of the channel thrice, including the current peak, but have failed to break through.
Now in the past occasions we have corrected 600-700 points from the peak every time that happened twice this year (marked with blue arrows).
Assuming that thesis holds good we should see a similar move or alternatively the lower correction channel that has been forming. this points to a region of 10500-530 areas as a potential target. only a break of this channel low will open up new levels.
Trade chiuso: obiettivo raggiunto:
Low Made exactly around 10550 areas, closed the trade. now for second scenario to play out we need to break 10550 on closing before moving above 10890 region.
