Hello Traders,
as of yesterday I wrote that the NIFTY200 shows a "bearish Engulfing" pattern on a daily basis and the ISHARE MSCI India Small Cap Index Fund was working on a Barrier triangle which is heavily to break!
So today it occurs that both Index and also the NIFTY50 where deeply sold by traders and new lows occurs to the Indexes. Normaly a bearish engulfing lastet 2-3 days with selling preasure and a reversal may occur than to the upside.
The NIFTY50 met the target zone at 9883.05 which is the 1.27 length of the Wave a distance. The Expactation for a ZigZag is nearly fullfiled. One open targetzone surronds about the 9845 to 9792 area. Here a Fibocluster zone is set, with the 0.5 RT of the complete advance (9448 zo 10137.85) and also a Wave 4 of lesser degree is here at place and the 1.618 FibExt of the running correction.
Maybe one pullback is still at forefront, back to the 10K level which is resistance again. Often times Index are still bouncing arount those resistance zones and if they failed to break them a sharp setback often occurs. So the next move is not quite clear and as of yesterday open to different interpretation. The RSI (14, close) is declining to a zone nearly oversold and I look for a divergence to the Index here. On a daily basis the RSI dropped to ~42 which is a in bearish territory. More bearish potencial exists.
Have a great evening..........
rubennase
as of yesterday I wrote that the NIFTY200 shows a "bearish Engulfing" pattern on a daily basis and the ISHARE MSCI India Small Cap Index Fund was working on a Barrier triangle which is heavily to break!
So today it occurs that both Index and also the NIFTY50 where deeply sold by traders and new lows occurs to the Indexes. Normaly a bearish engulfing lastet 2-3 days with selling preasure and a reversal may occur than to the upside.
The NIFTY50 met the target zone at 9883.05 which is the 1.27 length of the Wave a distance. The Expactation for a ZigZag is nearly fullfiled. One open targetzone surronds about the 9845 to 9792 area. Here a Fibocluster zone is set, with the 0.5 RT of the complete advance (9448 zo 10137.85) and also a Wave 4 of lesser degree is here at place and the 1.618 FibExt of the running correction.
Maybe one pullback is still at forefront, back to the 10K level which is resistance again. Often times Index are still bouncing arount those resistance zones and if they failed to break them a sharp setback often occurs. So the next move is not quite clear and as of yesterday open to different interpretation. The RSI (14, close) is declining to a zone nearly oversold and I look for a divergence to the Index here. On a daily basis the RSI dropped to ~42 which is a in bearish territory. More bearish potencial exists.
Have a great evening..........
rubennase