Nifty’s Unsustainable Recovery ?
Hello !
The Nifty 50 attempted a recovery today, bouncing from a crucial support zone defined by the Fibonacci channel. Nifty continues to trade below its 20, 50, and 200-day moving averages, reinforcing the broader bearish trend.
Key Support Level: A decisive break below 23,500 (today’s low) could trigger a deeper correction toward 23,269, the next Fibonacci channel support.
Immediate Resistance: On the upside, 24,000–24,200 remains a formidable hurdle, marked by both moving averages and Fibonacci retracement levels.
Takeaway for Traders
Today’s bounce, while technical, appears fragile and lacks conviction. Unless the index quickly reclaims key resistance levels, the path of least resistance remains downward. Traders should approach this recovery with caution and use rallies to reduce risk or consider fresh shorts near resistance zones.
Conclusion:
While it’s tempting to see today’s hammer as a bullish signal, the broader technical setup suggests otherwise. Until Nifty breaks above 24,000 with conviction, the bearish undertone remains intact. Volatility is likely to persist—trade carefully!
Thanks
The Nifty 50 attempted a recovery today, bouncing from a crucial support zone defined by the Fibonacci channel. Nifty continues to trade below its 20, 50, and 200-day moving averages, reinforcing the broader bearish trend.
Key Support Level: A decisive break below 23,500 (today’s low) could trigger a deeper correction toward 23,269, the next Fibonacci channel support.
Immediate Resistance: On the upside, 24,000–24,200 remains a formidable hurdle, marked by both moving averages and Fibonacci retracement levels.
Takeaway for Traders
Today’s bounce, while technical, appears fragile and lacks conviction. Unless the index quickly reclaims key resistance levels, the path of least resistance remains downward. Traders should approach this recovery with caution and use rallies to reduce risk or consider fresh shorts near resistance zones.
Conclusion:
While it’s tempting to see today’s hammer as a bullish signal, the broader technical setup suggests otherwise. Until Nifty breaks above 24,000 with conviction, the bearish undertone remains intact. Volatility is likely to persist—trade carefully!
Thanks
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